White House Proposes Reorganization of the Federal Government

In mid-June 2018, the Trump Administration released a report — Delivering Government Solutions in the 21st Century —  calling on Congress to reorganize the federal government’s executive agencies in an effort to streamline government operations. The plans call for the transfer of various federal programs to different agencies and the merger of federal agencies, some of which impact federal housing and community development programs, specifically (1) USDA’s single family loan programs, Section 502 Single-Family Housing Guaranteed and Direct Loan Program and rural multifamily housing programs be consolidated with FHA’s affordable housing programs; (2) HUD’s CDBG program be transferred to a new Bureau of Economic Growth which would be housed under the Commerce Department which would also take over other federal economic development programs including the Economic Development Administration’s Economic Development Assistance programs and USDA’s rural business and community facility grant programs; and (3) The reorganization of the federal housing finance system specifically proposing that Fannie Mae and Freddie Mac be released from conservatorship, their federal charters revoked and making both fully privatized.

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