The Fair Housing Center of Central Indiana (FHCCI) is among several housing advocacy groups nationwide facing funding cuts due to cost-cutting measures implemented by Elon Musk’s personal consulting organization “Department of Government Efficiency” (DOGE). The move has resulted in the termination of the remainder of a $138,889 grant that was expected to sustain the organization through June 30, 2025.

The U.S. Department of Housing and Urban Development (HUD) informed FHCCI of the funding cut in a letter, citing directives from DOGE that took effect on Feb. 27. FHCCI Executive Director Amy Nelson stated that the decision will cost the nonprofit approximately $50,000, significantly impacting its ability to provide fair housing advocacy and legal efforts to combat discriminatory practices.

“The loss of these funds would be devastating to our organization,” Nelson said.

She noted that about 85% of FHCCI’s budget comes from HUD’s Fair Housing Initiatives Program (FHIP) grants. The organization has applied for $840,000 in FHIP funding for the 2025-2026 fiscal year, but HUD has yet to announce the awards.

“Typically, these grants would have been announced by now,” Nelson said in an email. “It is our understanding that, despite the Congressional appropriation, these grants are part of the funding freeze.”

FHCCI’s budget shortfall is part of a larger pattern of HUD funding freezes and cuts affecting housing programs across the country.

According to the Associated Press, the Trump administration has placed at least $60 million in Section 4 grant funding in limbo, affecting hundreds of affordable housing projects. Congress had previously allocated these funds to be distributed by three nonprofit organizations, but HUD has canceled contracts with two of them, citing non-compliance with an executive order targeting DEI initiatives.

The funding freeze comes as the Trump administration restructures HUD operations, including staff reductions and contract cancellations. While a HUD spokesperson stated that the Section 4 program will continue, the agency is “consolidating some grants, while others remain,” leaving many small housing nonprofits uncertain about when or if they will receive the funds they were promised.

Without access to these federal grants, housing advocates warn that affordable housing developments will stall, worsening housing shortages and increasing the risk of displacement and homelessness. The FHCCI, along with other housing organizations nationwide, now faces an uphill battle to secure alternative funding to continue its mission.

Economists generally recognize that even taxpayer-funded affordable housing in an area can help lower the cost of living while stimulating economic growth. Research from the Urban Institute has shown that increasing the supply of affordable housing introduces competition into markets where high prices are driven by scarcity, preventing rent inflation and reducing overall housing costs.