Trump Administration to Leverage Federal Lands for Affordable Housing

The Department of the Interior (DOI) is teaming up with the Department of Housing and Urban Development (HUD) to identify federal lands ripe for the development of affordable housing. In an effort launched by the Trump administration, these two agencies are joining forces to formulate a strategy that taps into government-managed “underutilized” lands. By transferring these areas to states and local communities, they aim to tackle the growing shortage of 7 million housing units in the USA. Agency leaders point out that the Interior Department oversees over 500 million acres that could be harnessed to bridge this gap.

In an official announcement on Monday, HUD and Interior unveiled the creation of the Joint Task Force on Federal Land for Housing. This move is intended to fulfill a campaign promise made by President Trump. Secretary Doug Burgum declared that the Interior Department would focus on pinpointing underused lands that are ideal for residential projects and expedite their transfer. Meanwhile, HUD, led by Secretary Scott Turner, will pinpoint areas in dire need of housing that align with suitable government-owned land. Furthermore, HUD plans to collaborate with states and localities to execute “tailored housing programs.”

The duo has promised careful attention to environmental and land use considerations. “Together, our agencies can take stock of overlooked federal properties, hand them over or lease them to states or local territories to meet housing demands, and support the essential infrastructure for successful development—while ensuring affordability remains at the mission’s core,” Burgum and Turner co-wrote in The Wall Street Journal.

They acknowledge that developing on federal land often entails “a bureaucratic maze,” yet their task force plans to “streamline the process.” Moreover, they assured collaboration with rural and indigenous communities. “This isn’t a carte blanche to develop on federal lands—though we anticipate detractors may label it that,” said the secretaries. “It’s a strategic exercise in resource stewardship, keeping our nation’s most picturesque landscapes intact.”

Skeptics of this initiative, including Gov. Tim Walz, D-Minn., during a debate with then-Sen. J.D. Vance, R-Ohio, highlighted that the direst need for affordable housing is often in urban centers far from substantial federal lands. Athan Manuel from Sierra Club accentuated that the current actions of the Trump administration do not coincide with its recent proclamations.

“Since January 20, there have been multiple overtures to hand over public lands to corporate interests, alongside massive layoffs from key agencies like the Bureau of Land Management and HUD—both crucial to addressing the housing crisis with sincerity,” expressed Manuel. “Donald Trump has clearly shown where he believes the benefits of public lands should go, and it certainly isn’t to the American populace.”

As the departments kickstart this new endeavor, they will be operating with reduced personnel. The Department of the Interior recently issued early retirement and buyout packages to its nearly 70,000 employees, though only a select number will be eligible. The Office of Personnel Management granted the Voluntary Early Retirement Authority and Voluntary Separation Incentive Program, aiding the department’s plans to contract its workforce before looming layoffs.

The department aims to “restructure our organization to meet future needs,” as stated in an employee email obtained by Government Executive. This reorganization is a step towards “streamlining core operations” while “maintaining fiscal responsibility,” the message continued.

Eligible employees have until March 26 to accept the offers. Those who choose to participate and receive approval must separate by May 31. The deadline is firm; however, the department might open additional rounds in the future. They also mentioned limiting participants to ensure these incentives do not hinder mission-critical roles, excluding positions like firefighters and law enforcement.

The VERA allows employees to access their full retirement earlier than usual, while the VSIP offers them a departure payout of up to $25,000. Although this buyout is designed to preempt potential layoffs, the perks are somewhat less appealing; employees under reduction-in-force notices still retain a 30- or 60-day salary post-notice and qualify for unemployment benefits.

The Department of the Interior is the latest to roll out separation incentives. Other departments, including Commerce, Education, Health and Human Services, and the General Services Administration, have announced or already gained authority to provide early retirements and buyouts up to a cap of $25,000, as reported by informed employees and examined documents by Government Executive. The OPM has been encouraging departments to request these authorities, with none having reported a lack of intention to do so.

HUD is also on track to shrink its workforce significantly. An internal memorandum obtained by Government Executive disclosed that the Office of Field Policy and Management at HUD has issued RIF notices to employees up to General Schedule-13. These staff members face job termination by May 18, with a broader wave of layoffs expected to follow, according to a source familiar with the situation.

Secretary Turner assured last week that core HUD services will remain unaffected, yet acknowledged that cuts are inevitable as changes unfold within the department.