Update on Federal Staff Reductions
Led by the Department of Government Efficiency (DOGE) to reduce the size of the federal government, federal staff reductions are occurring across multiple departments and agencies. Thousands of federal employees on probationary status were fired earlier this year but this sweeping action has been challenged in court. On April 1, U.S. District Court Judge James Bredar issued a preliminary injunction ordering the Trump Administration to reinstate by April 8 federal probationary workers from 19 states (Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Wisconsin) and the District of Columbia.
HUD is in the process of reinstating probationary employees from across the country, but many have been placed on administrative leave with pay with no confirmed date of reinstatement of duties. But some of these probationary employees will be dismissed again as the Supreme Court issued a temporary stay yesterday allowing the Trump Administration to re-fire federal probationary employees living or working outside the 19 states and the District of Columbia. The Supreme Court’s decision will remain in effect until the Ninth Circuit Court hears the full case.
Results from a survey conducted by NCDA to its members indicate that some HUD field offices have experienced higher staff reductions than others with most of the reductions occurring due to the firing of probationary staff and less because of early retirements or buyouts (deferred resignation program). The deadline for HUD employees to accept a buyout is April 10 and so far, nearly 600 HUD employees across the country have chosen this option, according to a HUD source. Results from NCDA’s survey of members shows they are concerned about field office closures and the impact on program operations and funding. Rep. Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, sent a letter last week to the Government Accountability Office and HUD’s Inspector General seeking their investigation of whether HUD is complying with federal statute to maintain at least one field office in every state.
The Administration has ordered a federal hiring freeze and directed agencies to initiate reductions in force (RIF) through agency reorganization plans. According to the guidance provided to agency heads, the plans should focus on the maximum elimination of functions that are not statutorily mandated, consolidate management layers, reduce positions that are not critical, close and/or consolidate field offices where needed, and reduce the use of outside consultants and contractors.
Federal agencies were directed to submit their Phase 1 reorganization plans to the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM) on March 13 for review and approval. The Phase 1 plans identified which positions may be affected by a reduction in force and a timeline for implementing the staff cuts.
Federal agencies are required to submit a Phase 2 plan to OMB and OPM by April 14 that confirms the agency has reviewed all personnel data including each employee’s position description and performance ratings, outlines all staff reductions including FTEs, term and temporary positions, and contractual positions, and any proposed relocation of agency offices from Washington, DC. The plan must also include a new organizational chart with consolidated functions.
NCDA will continue to keep members informed of HUD staffing changes as we receive news.
FY25 Grant Allocations; Con Plan and Annual Action Plan Submissions
According to a HUD source, CPD grantees can expect notification of FY25 grant allocations by May 15. HUD, under the Biden Administration, issued guidance to grantees in January on submitting FY25 consolidated plans and annual action plans. The Trump Administration has not released additional guidance at this point. NCDA and COSCDA sent a letter to Secretary Turner on April 3 seeking guidance on how grantees should align their consolidated plans and annual action plans with President Trump’s executive orders.
House Seeks Input on the CDBG and HOME Programs
Yesterday, Chairman and Ranking Member of the House Subcommittee on Housing and Insurance, Rep. Mike Flood (R-NE) and Emanuel Cleaver II (D-MO) released a request for information for ideas on improving the CDBG and HOME programs. Responses are due to floodcleaver@mail.house.gov by April 25.
NCDA believes this request is in advance of the subcommittee taking action to reauthorize the programs. NCDA will provide comments by the April 25 deadline that will mirror our written statement to Congress last month on needed program changes that were based on extensive member feedback.
Senate Passes Budget Framework to Move Trump Initiatives
The Senate passed a budget resolution in the early hours of Saturday morning that provides the vehicle for moving forward Trump’s major campaign initiatives. It’s the first step toward a final bill to make permanent the 2017 tax cuts and provide increased funding for defense, border enforcement, and Trump’s energy plan. The Senate resolution also lifts the debt limit by $5 trillion.
The budget resolutions approved by each chamber are different. The Senate budget resolution provides $6.5 trillion for tax relief – $5 trillion to make permanent the expiring provisions in the Tax Cuts and Jobs Act of 2017 and $1.5 trillion for new tax cuts. The House budget resolution provides only $4.5 trillion for tax relief. Also, each chamber offers different numbers for deficit reduction. The House budget resolution calls for $1.5 trillion in spending cuts while the Senate budget resolution seeks only $4 billion in federal program cuts.
Here’s the rub, the House and Senate must pass identical versions of the budget resolution to use reconciliation, a process that would allow Republicans to use a simple majority vote to pass legislation enacting the priorities outlined in the budget resolution. Reconciliation also avoids the use of a filibuster by Democrats to thwart legislation.
The House hopes to adopt the Senate budget resolution by next week, but some conservative House Republicans are balking at the high price tag and the small cuts to federal spending.
Federal Agencies Rescind CRA Regulations
Last week, the FDIC, Federal Reserve Board, and the Office of the Comptroller of the Currency announced the rescission of the 2023 Community Reinvestment Act (CRA) final rule and the reinstatement of the CRA rule from 1995. The implementation of the 2023 rule had been blocked by a federal judge last year.
Enacted in 1977, the basic purpose of the Community Reinvestment Act (CRA) is to ensure that depository institutions help meet the credit needs of the entire communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. The 2023 final rule encouraged banks of all sizes to expand access to credit, investment, and banking services in low- and moderate-income communities. It also encouraged banks to use technology to reach these communities through mobile and online banking services.
National Community Development Week – Share Your Planned Activities
National Community Development Week, April 21-25, provides the opportunity for CDBG grantees to promote the program, educate Congressional offices on the program’s impact, and advocate for increased program funding. This year, we are advocating for the HOME program, too, which has seen threats of deep funding cuts in recent years.
National Community Development Week is intentionally held during a time when Congressional members are in recess and back home so that CDBG grantees can connect with them through meetings, projects tours, and other activities. It is also held during a crucial period in the Congressional appropriations process when Congress is making decisions about program funding.
Please share your schedule of planned activities for National Community Development Week with Ashley DiBiase to post on social media. Share your National Community Development Week materials with NCDA to include in the Tool Kit.
National Community Development Week Resources
Call for Presenters for the 2025 NCDA Annual Conference!
NCDA invites members to serve as panelists at the 56th NCDA Annual Conference in Salt Lake City, June 11-13. Your insights and expertise are invaluable to the conference’s success. Speakers and moderators are needed in nearly every conference session. Play a role in the leading conference for community development professionals by sharing your knowledge with your peers. Please let us know your interest in participating as a panelist by contacting vwatson@ncdaonline.org.
Upcoming NCDA Events
IDIS Basics Online
April 29-May 22
Tuesdays/Thursdays
2:00-4:30 pm ET
https://ncdaonline.regfox.com/
This course provides a detailed overview of IDIS for CDBG and HOME grantees.
HOME Advanced + Underwriting – In Person, Raleigh, NC
May 14-16
In person
https://ncdaonline.regfox.com/
This course provides a more detailed look at actual HOME-funded projects, grant agreements, initial and ongoing compliance, and the use of innovative partnerships to address housing needs with HOME funds.
NCDA Annual Conference
Salt Lake City, UT
Little America Hotel
June 10-13, 2025
Register here
