The Trump administration has terminated housing assistance and FHA mortgages for illegal immigrants, redirecting federal resources to prioritize American citizens amid an intensifying crackdown on undocumented residents.
Key Takeaways
- HUD Secretary Scott Turner and DHS Secretary Kristi Noem have established a memorandum titled “American Housing Programs for American Citizens” to prevent taxpayer dollars from benefiting illegal immigrants.
- The administration has terminated FHA mortgage eligibility for illegal immigrants and non-permanent residents, including DACA recipients and those with pending asylum claims.
- Trump’s executive order “Ending Taxpayer Subsidization of Open Borders” directs federal agencies to identify and terminate programs providing benefits to undocumented immigrants.
- HUD cited data indicating 59% of illegal migrant households benefit from government welfare programs at an approximate cost of $42 billion.
- The Department of Homeland Security and HUD are collaborating to address concerns that at least 9 million residents in public and subsidized housing lack proper eligibility status verification.
Trump Administration Overhauls Housing Assistance Eligibility
President Trump’s administration has taken decisive action to ensure government-funded housing programs exclusively benefit American citizens. The Department of Housing and Urban Development (HUD) under Secretary Scott Turner, working in conjunction with Department of Homeland Security Secretary Kristi Noem, has established a new memorandum of understanding to eliminate taxpayer-funded housing benefits for illegal immigrants. This policy change represents a significant shift from the previous administration’s approach and fulfills one of Trump’s campaign promises to prioritize Americans in federal assistance programs.
The new initiative, titled “American Housing Programs for American Citizens,” aims to remedy what the administration describes as years of taxpayer dollars being directed toward housing for undocumented residents. HUD will provide a full-time staff member to the Incident Command Center to monitor housing programs and ensure compliance with the new directives. This cooperative effort between HUD and DHS marks a comprehensive approach to enforcing immigration policies across federal housing programs.
FHA Mortgages No Longer Available to Non-Citizens
Beyond public housing, the Trump administration has extended its policy changes to Federal Housing Administration mortgages. Secretary Turner announced that taxpayer-backed FHA mortgages will no longer be available to illegal immigrants or non-permanent residents. This change affects DACA recipients and those with pending asylum claims who previously had access to these government-backed, low-income home loans during the Biden administration. The policy shift represents a significant reversal of previous lending practices that allowed various categories of non-citizens to qualify for federally insured mortgages.
“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.”
The administration cited concerning statistics to justify these changes, noting that HUD data indicates approximately 59% of illegal migrant households currently benefit from government welfare programs at an estimated cost of $42 billion. Additionally, officials highlighted that there are at least 9 million residents in public and subsidized housing without proper eligibility status verification, creating what they describe as a significant accountability gap in the housing assistance system.
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 Executive Actions Target Immigrant Benefits
The housing policy changes are part of a broader series of executive orders signed by President Trump since taking office in January 2025. On February 20, Trump signed an executive order titled “Ending Taxpayer Subsidization of Open Borders,” which directs federal agencies to identify and terminate programs providing benefits to undocumented immigrants. The order also threatens to restrict federal funding to sanctuary cities and states, though previous attempts faced judicial challenges during Trump’s first term.
“If you are an illegal immigrant, you should leave now. The gravy train is over,” said the DHS chief.
These housing-focused initiatives complement other recent administration actions, including revoking waivers that allowed Oregon and California colleges to use federal funds for services to undocumented students. The Department of Education announced these changes as part of efforts to realign federal education resources toward American citizens. The revocations specifically targeted the Performance Partnership Pilots for Disconnected Youth program, which previously permitted certain accommodations for undocumented college students.
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
