Cutbacks at HUD come as Black homeownership falls
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The Department of Housing and Development on Monday fired two civil rights lawyers who spoke publicly about their whistleblower complaint over the Trump administration's cuts to the office that enforces fair housing laws.
Why it matters: The lawyers said the cuts are making it close to impossible to enforce civil rights laws meant to protect Americans from housing discrimination based on race, gender and disability.
- White House has also fired other federal employees for whistleblowing about happenings inside their agencies, including at the Federal Emergency Management Agency
Zoom in: Palmer Heenan and Paul Osadebe were among six current and former HUD employees who talked to the New York Times for a story last week.
- The report found that the administration has cut or reassigned staff away from the Fair Housing Office, which is responsible for investigating and prosecuting discrimination from landlords, lenders and real estate agents based on race, religion, gender or disability.
- The department has investigated and prosecuted far fewer cases this year than is typical, per the report.
Zoom out: The pair had been in contact with Sen. Elizabeth Warren (D-Mass.) who referred their whistleblower complaints to HUD's acting inspector general last week.
- "Donald Trump doesn't want Americans to know that his administration is engaged in a systemic attack on their rights," Warren said in a statement Monday.
The other side: "HUD does not comment on individual personnel actions, but all employees are expected to follow federal regulations, and departmental policies and procedures," a spokesperson told the Washington Examiner. "HUD employees are expected to execute the mission of the agency."
- A HUD spokesperson told Axios that "case closures and dismissals remain steady," at the Office of Fair Housing and Equal Opportunity (FHEO). And that the agency is "fixing the Biden backlog by developing better processes and systems."
- The office is "using its authority to uphold the law, protect the vulnerable, and ensure meaningful access to housing," according to the spokesperson.
- "The Department's actions will be to enforce compliance with all laws and real harms, not those based on ideology or illegal forms of discrimination."
The big picture: The firings and cuts come at a time when the Black homeownership rate is already falling, and the White House has pulled back on civil rights enforcement — part of its crackdown on DEI.
- The decrease exacerbates the longstanding racial homeownership gap, and may be a sign of increasing economic stress for Black Americans who are facing a sharp increase in unemployment, too.
- There has long been a wide gap between Black and white households in homeownership rates — the result of systemic discrimination and longstanding wealth disparities.
- Homeownership is the main way that Americans build wealth.
Yes, but: Fair Housing laws aren't only about Black homeowners, but also cover other folks who aren't seeing a decline.
Between the lines: "Rising unemployment is one likely reason the homeownership rate for Black families has dropped recently," Redfin chief economist Daryl Fairweather said in a statement.
- The dismantling of DEI programs across the private and public sectors, also may have resulted in fewer Black employees being hired or promoted, she added.
Editor's note: This story has been updated with comment from HUD.
