Illegal Immigrant Housing Funding Axed by Trump Admin’s HUD

President Trump’s administration cuts off access to government housing for illegal immigrants and bans taxpayer-backed mortgages for non-permanent residents, prioritizing housing resources for American citizens.

Key Insights

HUD Secretary Scott Turner and DHS Secretary Kristi Noem have established “American Housing Programs for American Citizens” to end illegal immigrant access to public housing.
The administration has terminated FHA mortgage eligibility for illegal immigrants and non-permanent residents, including DACA recipients.
HUD will provide staff at the Incident Command Center to ensure housing programs don’t benefit illegal aliens.
Government data indicates 59% of illegal migrant households benefit from welfare programs, costing approximately $42 billion.

Trump Administration Ends Housing Benefits for Illegal Immigrants

The Trump administration has taken decisive steps to redirect housing resources away from illegal immigrants and toward American citizens. Housing and Urban Development Secretary Scott Turner and Department of Homeland Security Secretary Kristi Noem announced a new memorandum of understanding to prevent taxpayer dollars from subsidizing housing for illegal migrants. This agreement establishes clear protocols for identifying and removing illegal immigrants from public housing programs across the country.

The agreement, titled “American Housing Programs for American Citizens,” directs federal agencies to coordinate efforts ensuring housing benefits are exclusively provided to eligible U.S. citizens and legal residents. HUD will assign full-time staff to assist operations at the newly formed Incident Command Center, tasked with monitoring compliance and preventing unauthorized access to housing programs. This initiative follows President Trump’s February executive order aimed at ending taxpayer subsidization of illegal immigration.

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

FHA Mortgage Access Restricted

In a parallel policy change, the administration has barred illegal immigrants and non-permanent residents from receiving Federal Housing Administration (FHA) mortgages. These government-backed loans, which typically offer more favorable terms for lower-income buyers, will no longer be available to DACA recipients or individuals with pending asylum claims. The change reverses policies implemented during the Biden administration that had expanded access to these taxpayer-backed home 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.”

According to HUD data, there are at least 9 million residents in public and subsidized housing without proper eligibility status information sharing between agencies. The department also cited statistics indicating that 59% of illegal migrant households benefit from government welfare programs, with associated costs reaching approximately $42 billion. These figures reinforced the administration’s determination to redirect resources toward American citizens.

Broader Policy Changes Affecting Immigrants

The housing policy changes are part of a comprehensive approach by the Trump administration to reduce benefits available to undocumented immigrants. In addition to housing restrictions, the 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 has made clear that these programs are intended to serve disadvantaged Americans, not illegal immigrants.

“If you are an illegal immigrant, you should leave now. The gravy train is over,” DHS Secretary Kristi Noem stated firmly, signaling the administration’s intent to enforce these policies rigorously.

The executive order signed on February 20, titled “Ending Taxpayer Subsidization of Open Borders,” instructs federal agencies to identify and terminate programs providing benefits to undocumented immigrants. This includes restrictions on federal funding to sanctuary cities and states, enhanced verification systems, and mandated reporting of benefits misuse. The order affects various federal programs, including those providing emergency medical care, education, and disaster relief that had previously been accessible to undocumented residents.