Affordable Housing at Risk as $1 Billion Retrofit Program Gets Terminated

Affordable Housing at Risk as $1 Billion Retrofit Program Gets Terminated

Tens of thousands of affordable housing units across the country are now in jeopardy after the Trump administration moved to shut down a $1 billion federal program meant to extend the lifespan of aging, low-income apartment buildings.

What Was the Program?

The Green and Resilient Retrofit Program (GRRP), passed by Congress in 2022, was designed to help building owners make energy-efficient and climate-resilient upgrades—think new HVAC systems, leak repairs, weatherproofing, and safer insulation. But the program did more than improve energy use. It helped preserve affordable housing by requiring buildings to remain low-cost for up to 25 years.

As housing advocates have pointed out, these grants and loans often serve as the foundation for additional financing. If you pull out the base, the rest of the project can collapse.

Why Was It Cut?

The decision to shut the program came from the Department of Government Efficiency (DOGE), led by Elon Musk, as part of a broader push to reduce government spending. HUD has not publicly explained the move, and details on how the program will be wound down remain unclear.

According to PBS NewsHour, two HUD employees confirmed that the program is being terminated, and an internal memo cited direction from DOGE as the reason.

Who’s Affected?

More than 25,000 units were already approved for upgrades under the GRRP—units that house seniors, low-income families, and people with disabilities. One example the PBS News Hour provides is the Smith Tower Apartments in Vancouver, Washington, a 170-unit building serving seniors with limited income. The building was set to receive $10 million for vital renovations like a new sprinkler system.

Residents like Al Hase and Joan Starr, both in their 70s, say they simply can’t afford to move elsewhere. “It’s kinda terrifying,” Hase told the Associated Press.

What Happens Now?

About two dozen projects are expected to still receive funding, but the rest are in limbo. Nonprofits and housing developers are scrambling to find alternative sources, which may be more expensive and take longer. Delays could often mean losing other investors, leading to complete project failure.

Travis Phillips of the Housing Development Center put it plainly: “The reality is that will take time and will inevitably make the project more expensive.”

Why It Matters

Affordable housing is already scarce in the U.S.—and becoming harder to find. Programs like GRRP don’t just fix buildings. They keep people in their homes. For many residents living on Social Security or low wages, these aren’t just “upgrades”—they’re the difference between having a roof overhead or not.

As one administrator told PBS, “If this building were not here, a lot of our folks would actually probably be homeless.”

Wider Impact Across the U.S.

The GRRP funded projects in 42 states, the District of Columbia, and Puerto Rico. Without this investment, communities in both urban and rural areas face growing maintenance backlogs. That means more housing is falling into disrepair, fewer safe options for low-income renters, and mounting pressure on already overburdened housing assistance programs.