President Trump has put a decisive end to federally funded housing benefits for illegal immigrants, redirecting resources to prioritize American citizens in need of housing assistance.
Key Takeaways
- The Trump administration has terminated Federal Housing Administration (FHA) mortgages for illegal immigrants and restricted access to public housing.
- A new memorandum between HUD and DHS titled “American Housing Programs for American Citizens” aims to stop taxpayer money from subsidizing housing for illegal immigrants.
- According to HUD data, 59% of illegal migrant households benefit from government welfare programs, costing approximately $42 billion.
- The policy changes also affect non-permanent residents, DACA recipients, and those with pending asylum claims.
- The initiative is part of a broader executive order signed by President Trump on February 20, 2025, titled “Ending Taxpayer Subsidization of Open Borders.”
Housing Reforms Target Illegal Immigration
The Department of Housing and Urban Development (HUD) has announced a significant policy shift that will prevent illegal immigrants from accessing federally funded housing programs. Housing and Urban Development Secretary Scott Turner, alongside Department of Homeland Security Secretary Kristi Noem, unveiled a new memorandum of understanding between the agencies that will redirect housing resources exclusively to American citizens.
The memorandum, titled “American Housing Programs for American Citizens,” establishes a framework to ensure taxpayer dollars are not used to subsidize housing for illegal immigrants. HUD will assign dedicated staff to the Incident Command Center to oversee compliance and identify individuals currently receiving benefits without proper eligibility. This initiative affects both public housing access and FHA mortgage approvals, which are government-backed loans designed for low-income homebuyers.
Financial Impact and Resource Reallocation
The administration cited alarming statistics as justification for the policy change. According to HUD data, approximately 59% of illegal migrant households currently benefit from government welfare programs, costing American taxpayers an estimated $42 billion. Officials also noted that at least 9 million residents in public and subsidized housing lack proper eligibility status information sharing, creating a significant oversight gap in federal housing assistance.
“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,” said Scott Turner.
Secretary Noem issued a stern warning to those affected by the policy change, emphasizing the administration’s commitment to enforcing the new guidelines. The crackdown on housing benefits follows President Trump’s February 20 executive order titled “Ending Taxpayer Subsidization of Open Borders,” which directs federal agencies to identify and terminate programs that provide benefits to undocumented immigrants.
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
Broader Policy Implementation
The housing initiative is just one component of a comprehensive strategy to redirect federal resources toward American citizens. The Trump administration has also revoked waivers that allowed colleges in Oregon and California to use federal funds for services to undocumented students through the Performance Partnership Pilots for Disconnected Youth program. Additionally, the administration is working to restrict federal funding to sanctuary cities and enhance verification systems to prevent misuse of benefits.
“The Biden Administration prioritized illegal aliens over our own citizens, including by giving illegal aliens taxpayer-funding housing at the expense of Americans. Not anymore,” Noem said in a statement.
The FHA mortgage policy change is particularly significant as it affects not only illegal immigrants but also non-permanent residents, including DACA recipients and those with pending asylum claims. These individuals will no longer be eligible for government-backed, low-interest home loans designed to help low-income families achieve homeownership. This reverses policies implemented during the Biden administration that had expanded access to these financial resources.
Enforcement Mechanisms
To enforce the new housing guidelines, HUD is implementing enhanced verification procedures and establishing coordination channels with DHS. The administration has instructed federal agencies to revise programs, enhance verification systems, and report any misuse of benefits. Federal funding to states and localities may be contingent upon compliance with these new directives, though previous attempts to restrict funding to sanctuary cities faced legal challenges.
“If you are an illegal immigrant, you should leave now. The gravy train is over,” the DHS chief added.
The administration maintains that these policy changes align with existing laws that generally prohibit illegal immigrants from receiving federal benefits, with limited exceptions for emergency medical care and disaster relief. By reallocating housing resources exclusively to American citizens, the Trump administration aims to address the national housing shortage while fulfilling campaign promises to prioritize the needs of American citizens in federal assistance programs.
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
