President Trump’s administration cuts off taxpayer-funded housing assistance for undocumented immigrants, signaling a major shift in federal housing policy that prioritizes American citizens first in accessing the nation’s limited housing resources.
Quick Takes
- The Trump administration has terminated federal housing program assistance for undocumented immigrants through a new partnership between HUD and DHS.
- HUD Secretary Scott Turner and DHS Secretary Kristi Noem announced that FHA mortgages will no longer be available to illegal migrants and non-permanent residents.
- According to HUD data, 59% of illegal migrant households benefit from government welfare programs, costing approximately $42 billion.
- The initiative is part of President Trump’s broader executive order titled “Ending Taxpayer Subsidization of Open Borders” signed in February 2025.
- Officials estimate at least 9 million residents in public and subsidized housing lack proper eligibility status verification.
American Housing for American Citizens
The Department of Housing and Urban Development (HUD) and Department of Homeland Security (DHS) have established a memorandum of understanding titled “American Housing Programs for American Citizens” to prevent taxpayer dollars from subsidizing housing for illegal migrants. The agreement comes as part of President Trump’s broader initiative to redirect federal resources away from undocumented immigrants and toward American citizens. This policy shift marks a significant departure from previous administration policies that allowed mixed-status families to receive housing assistance and permitted non-citizens to access FHA-backed mortgages.
Under the new policy, HUD will provide a full-time staff member to assist operations at the Incident Command Center to ensure housing programs exclusively benefit eligible Americans. The policy affects both public housing units and government-backed mortgage programs, targeting what the administration describes as exploitation of these resources. Officials cite existing verification gaps that have allowed ineligible residents to receive benefits intended for American citizens and legal permanent residents during the housing affordability crisis.
Ending FHA Mortgages for Non-Citizens
In a significant extension of the policy, HUD Secretary Scott Turner announced the termination of taxpayer-backed Federal Housing Administration (FHA) mortgages for illegal immigrants and non-permanent residents. This ends access to government-backed, low-income home loans for DACA recipients and those with pending asylum claims. The policy change represents a major shift from previous practices that permitted various categories of non-citizens to obtain federally-insured mortgages with minimal down payments and lower credit requirements than conventional loans.
“American tax dollars should be used for the benefit of American citizens, especially when it comes to an issue as pressing as our nation’s housing crisis,” Scott Turner said in a statement. “This new agreement will leverage resources including technology and personnel to ensure American people are the only priority when it comes to public housing.”
HUD officials revealed that verification systems previously failed to adequately screen applicants, with an estimated 9 million residents in public and subsidized housing lacking proper eligibility status information. The administration has indicated that enforcement measures will include enhanced verification systems and reporting mechanisms to identify and address misuse of benefits. DHS Secretary Noem has taken a firm stance on the policy implementation, emphasizing the administration’s commitment to enforcing immigration laws.
Trump admin moves to crack down on illegal migrants living in public housing: ‘wasteful misappropriation’ of taxpayer money https://t.co/RqlAMTnQEZ pic.twitter.com/Kqs1N8ALhx
— New York Post (@nypost) March 25, 2025
Part of Broader Immigration Enforcement
The housing policy changes align with President Trump’s February 20, 2025 executive order “Ending Taxpayer Subsidization of Open Borders” that directs federal agencies to identify and terminate programs providing benefits to undocumented immigrants. The sweeping order impacts multiple federal agencies and programs, restricting access to benefits like emergency medical care, education assistance, and disaster relief that were previously available regardless of immigration status. It also threatens to withhold federal funding from sanctuary cities and states that do not comply with federal immigration enforcement.
“If you are an illegal immigrant, you should leave now. The gravy train is over,” the DHS chief said.
Beyond housing, the Trump administration has revoked waivers allowing Oregon and California colleges to use federal funds for services to undocumented students through the Performance Partnership Pilots for Disconnected Youth program. The Department of Education stated that the TRIO program and similar initiatives will refocus on serving disadvantaged American citizens. These policy changes collectively represent the administration’s systematic approach to redirect federal resources away from undocumented immigrants across multiple sectors.
Sources:
- President Trump Issues Dozens of Executive Orders Impacting Immigrants’ Access to Assistance, Federal Workforce and More | National Low Income Housing Coalition
- ‘Leave now…’: Trump’s big move to crack down on illegal immigrants living in public housing – The Economic Times
- Trump admin moves to crack down on illegal migrants living in public housing: ‘wasteful misappropriation’ of taxpayer money
