In an April 4 open letter to stakeholders and grantees, HUD Secretary Scott Turner underscored “that federal housing assistance will no longer be granted to illegal aliens or sanctuary cities” and “that the federal resources distributed by HUD shall be primarily focused on benefiting American citizens and other qualified recipients, not illegal aliens.”

The letter says it is reinforcing President Donald Trump’s Executive Order 14218, “Ending Taxpayer Subsidization of Open Borders.” By current law and policy, which the letter does not change, only U.S. citizens and eligible noncitizens may receive federal rental assistance in HUD’s Multifamily Housing programs (with certain exceptions for HUD’s Section 202 program).

Going forward, the letter says, “grant agreements will include language that will require compliance with Executive Order 14218, and the Department will take steps to ensure that Federal resources are not used to support ‘sanctuary’ policies of State and local jurisdictions that actively prevent federal authorities from deporting illegal aliens.”

By one estimate, there are 13 sanctuary states and 220 sanctuary cities in the United States. Whether the letter means these jurisdictions will lose their congressionally authorized and appropriated Community Development Block Grant, HOME block grants, or other HUD grants, is unclear but certainly can be read as a possibility.

Read HUD’s April 4 letter here.

Read about HUD’s March 2025 memorandum of understanding with the Department of Homeland Security to curb HUD assistance to undocumented immigrants in this LeadingAge article.

And keep up with this and related news via our EO Compliance, Funding Freeze, and DOGE Updates serial post.