Housing Help During a Government Shutdown

The federal government has a substantial set of programs to help people keep a roof over their head when it would otherwise be difficult or impossible to afford it. The U.S. Department of Housing and Urban Development funds programs that help millions of Americans pay rent or live in a house or apartment. These programs are administered through state public housing authorities or agencies. Federal U.S. Department of Agriculture housing programs and grants through the U.S. Treasury department also help support housing in rural and low-income areas.

When the federal government shuts down, many workers still stay on the job to keep the wheels turning on the multitude of federal housing programs, but money to fund programs may be slow in coming or may run out if a shutdown lasts too long.

When those who depend on federal housing programs find themselves caught in the middle of a government shutdown, there are some options that can help them keep a roof over their head.

How the Government Shutdown Impacts Housing Assistance

In the early days of a federal government shutdown, there won’t be an impact on rental housing assistance. Programs are funded in advance and there are also reserve funds that help cover programs until there’s a new budget that will fund them. How much is available and how long programs will be covered as a shutdown drags on depends on safety nets that Congress has set up as well as decisions made by the federal government and its departments.

Whenever a government shutdown looks like a possibility, each federal department must file a plan that outlines what programs, considered essential, will be paid for, what won’t, and what the affect on services will be. The impact on assistance for renters, landlords and homeowners during the 2025 shutdown was minimal, as major housing assistance programs were covered for a long period of time.

Government Shutdown Impact on Renters

There are two HUD assistance programs for renters who don’t have the income to cover full rent themselves. More than 9 million Americans live in public housing (apartment buildings for low-income residents). Another 5 million use Section 8 vouchers, officially called Housing Choice Vouchers (HCV), which reimburse landlords a portion of a qualifying tenant’s rent. The U.S. Department of Agriculture also has similar Section 515, 516, 521 and 538 programs for rural-area elderly, disabled, low-income and farm labor renters.

Existing HCVs in 2025 were initially funded through the end of November, then later extended through December as the shutdown went into its second month. New ones however, could be applied for, but were not being processed in most states.

Renters who live in public housing, in which HUD or USDA has a contract for a building owned by a public housing authority or private landlord, shouldn’t feel an impact during a shutdown. This Project-Based Housing Assistance (PBHA) or Rural Assistance (RA) housing is supported by contracts between the building owner and government that don’t end until the year is over, or they cover several years. Applications for potential tenants may not be processed, however.

During the 2025 shutdown, HUD paused fair housing enforcement activity. Renters could still file fair housing complaints, but they wouldn’t be looked at until the shutdown was over.

It also paused Section 8 waiver requests. Waivers of Section 8 qualifications are granted when  immediate emergency action is needed to allow someone in a crisis or with a disability who may no longer qualify for Section 8, or hasn’t been processed as qualifying, to stay in their housing.

Housing for low-income tenants is also paid for by the CDFI fund, a program of the U.S. Department of Treasury. It provides grants to financial institutions like credit unions and community banks that in turn can provide housing and rental assistance to low-income residents of their community. The fund was deemed nonessential during the 2025 shutdown, so funding for those programs was not available. It’s up to the administration, though – in future shutdowns, the funding may be considered essential and not terminated.

Government Shutdown Impact on Landlords

Landlords are still paid for Section 8 housing vouchers for weeks and even months during a government shutdown. During the 2025 shutdown, HUD agreed to fund vouchers through December. State housing authorities also have reserve funds they can use, with the amounts and length of time that would stretch out depending on the state.

Landlords who provide USDA Section 515, 514/516 and 538 housing will also still be compensated for a specific period of time.

If vouchers come up for renewal or expire during a shutdown, it’s possible the housing authority may not have staff to renew or process them. It’s important for landlords to connect with the housing authority and find out what will happen.

Landlords who have a project-based agreement with a housing authority (as opposed to vouchers that are attached to a tenant) have a contract that extends to the end of the year, or a number of years, and a government shutdown won’t have an impact on that.

Government Shutdown Impact on Homeowners

State housing authorities administer a variety of programs that make it possible for people to buy and maintain a home. Agencies that aren’t funded through annual appropriations, like the Federal Housing Finance Agency (FHFA) and federal banking regulators, won’t be disrupted much. Those whose programs that rely on an annual appropriation from Congress, though, will be affected. These include HUD, the U.S. Department of Agriculture (USDA), and the Community Development Financial Institutions (CDFI) Fund.

Most homeowners who already have loans backed by federal programs – FHA, VA and USDA home loans – won’t notice a change. Those in the process of buying a home and applying for a federally backed loan may have to wait for the shutdown to end before their loan is processed. This may push back the closing, or even nullify the home sale.

Existing loans through USDA Rural Development for single-family home purchase, construction or repair for those in rural areas who qualify by income won’t be interrupted by the a shutdown, but loans that are in the application pipeline likely won’t be processed.

Shutdown Impact on Grant and Housing Development Programs

Programs supported by federal grants that have yet to be funded may be interrupted by a shutdown.

This includes the massive Community Development Block Grant program, which not only provides rental and housing assistance money to state housing authorities, but also provides grants for programs that support and incentivize housing development in low and moderate-income areas across America. Grants range from lead paint mitigation, to housing revitalization loans in downtowns, to sidewalk, street and transportation improvements, to infrastructure systems like water and sewer that help support development.

In fiscal year 2024, which ended Sept. 30, 2015, CDBG appropriations for these programs totaled $3.3 billion. Grants under the CDBG program won’t be processed or awarded during a shutdown. This can slow down local affordable housing programs and assistance.

What Happens to Section 8 During a Government Shutdown?

Section 8, or Housing Choice Vouchers help to pay the rent for more than 5 million people in about 2.3 million households n the U.S. Some 1.2 million of those in the program are over age 65 or have a disability. Funded by HUD, the HCV program is administered through state housing agencies or authorities. Tenants who qualify aren’t handed money for rent. They pay their portion – 30% of their income or $50 a month, depending on which is higher. The housing authority pays the balance to the landlord.

Money for the program is to states in advance, so when the government shuts down, rents are subsidized for some time and the impact isn’t felt right away.

Federal departments are required to submit a plan for how they’ll spend money and who will work during a shutdown. During the 2025 shutdown, HUD’s plan called for Section 8 to be funded through the end of November, then later changed to include December. In general during a shutdown, if a budget isn’t approved by the time the money runs out, tenants already in the program shouldn’t feel the effects for months. Housing authorities also have reserves they can tap into to pay landlords during a funding crisis.

Applications for new Section 8 funding, though, even if they’re accepted during a shutdown, likely won’t be processed until the shutdown ends and all government workers are back at their desks.

What Section 8 Tenants Should Do During a Shutdown

Tenants who are in the HCV program are legally required to still pay their portion of the rent, no matter what is going on with Section 8 funding (this is also true if you have any form of USDA rental assistance). During a shutdown, pay your rent and allow the landlord and housing authority to deal with what is happening to their end of the funding. Continue to be a good and respectful tenant – the shutdown isn’t your fault, the landlord’s or the housing authority’s. You are all on the same team.

A landlord can not legally evict a tenant because of a government shutdown, terminate their voucher or raise the rent to cover money they’re not getting from the government. If you’re a tenant and are being evicted or experience a rent increase during a government shutdown, contact the housing authority that approved your Section 8 voucher. If you have USDA housing support, contact the local USDA Rural Development agency through which you applied for the assistance. Your state’s legal aid society can also provide advice and support.

What Section 8 Landlords Should Do During a Government Shutdown

Landlords whose Section 8 funding is disrupted during a shutdown will get reimbursed once it’s over and federal appropriations start flowing again.

During the shutdown, HUD usually asks landlords to submit tenant certifications and electronic voucher payment requests as usual to the Tenant Rental Assistance Certification System (TRACS). If a landlord needs critical repairs for an issue that has an impact on health and safety, they can request an emergency release from reserved during a shutdown by contacting their regional HUD asset management division director.

Landlords with Section 8 agreements can’t evict tenants or terminate their housing vouchers during a shutdown, or raise the tenant’s rent. It’s important to communicate with the housing authority about what you can expect regarding funding, and also to reassure tenants that they won’t lose their shelter because of the shutdown.

Immediate Housing Help if You Can’t Pay the Rent or Mortgage

If you are having trouble paying your rent or mortgage, help can be harder to find during a government shutdown.

If you have lost housing and are in immediate need of shelter, call 211, which will guide you to immediate local services. HUD’s Find Shelter tool also has links to homeless assistance, food pantries, health care and even clothing help in your area.

If you still have your apartment, or house, but can’t pay the rent or the mortgage, the first step is to let your landlord or lender know there’s a problem. Making payments may be a matter of cutting expenses or budgeting, but if it’s more serious than that, don’t ignore the issue.

State housing agencies don’t offer emergency housing help, but do offer resources to find it or programs that can help you reduce housing costs – though some might not be available during the shutdown. Other nonprofits in your state may also offer emergency help. The housing agency will likely have a list of them.

Once you’ve talked to a landlord or lender, if you can’t find a resource that will help you continue to make housing payments, contact a counselor at a nonprofit HUD-approved housing counseling agency, like InCharge Debt Solutions. The counselor, at no cost, will go over your financial situation with you, as well as options for budget, resources and, if needed, debt relief.

Housing Help for Federal Employees During a Shutdown

If you are a federal employee who isn’t being paid during the shutdown, you may be able to negotiate forbearance. This means that you don’t pay during the crisis, then have an agreement on how to catch up afterwards. Fannie Mae and Freddie Mac, which oversee about 70% of mortgages, directed lenders to help borrowers who may be affected by the shutdown, particularly with forbearance plans.

Many credit unions across the country, including Navy Federal and PenFed credit unions, offered no-interest loans to federal workers to help cover bills during the 2025 shutdown. Some states, like Maine and New York, backed zero-interest loans for furloughed or unpaid workers that require repayment within a certain time after the shutdown ends. Other states, like Maryland and California, set up housing protections and other resource programs.

Unions also provided help during the 2025 shutdown. The American Federation of Government Employees’ MyFedBenefits webpage listed sources for things like unemployment information, and had a map that showed what help was available in most states. The AFL-CIO also had a resource guide.

You may be tempted to make housing or grocery payments with a credit card during a shutdown. If you do, be sure that you have a budget plan to pay the cards off quickly once you start getting a paycheck again.

Eviction Prevention During a Shutdown

It is illegal for a landlord to evict tenants with HCVS (Section 8 vouchers) or who live in any kind of public-subsidized housing because of lack of government reimbursement during a shutdown. It is also illegal for them to terminate a voucher agreement or raise the rent.

If you are not in public-subsidized housing, you can be evicted – even if you’re a furloughed federal worker who isn’t being paid – with the rules depending on your state law.

The steps to take if you are being evicted:

• Get the eviction notice in writing and make sure it includes the landlord and tenant’s full names and contact information, the rental property address, date it was written, reason for eviction, the date by which the tenant must move out or pay overdue rent, consequences of not complying, signature of landlord or property manager and proof that it was delivered to the tenant. It’s important to have this as you pursue your case.
• If you are in Section 8, or other publicly funded housing, contact you states housing agency or authority.
• Whether you are in public housing or not, contact your state attorney general’s office, or check out the attorney general’s website, to find out what your rights are. Each state has its own eviction law and rules.
• Contact the local legal aid agency. They provide low-cost or free legal help, and can help you understand your rights, or even work on your behalf.

Eviction Protection for Military Members

If you are in the military, you’re protected by the Servicemembers Civil Relief Act (SCRA), which requires a court order for a landlord to evict you. It also requires a landlord give 90-days notice on an eviction if military duty keeps you from being able to pay rent. The government shutdown, however, may also slow your ability to bet SCRA protection verified if there are fewer government workers to process paperwork.

Foreclosure Prevention for Homeowners

When it’s almost impossible to contact federal workers during a shutdown, it’s tough to handle a possible home foreclosure. You need the help and resources HUD offers for those in danger of losing their home.

If you are facing foreclosure during a federal shutdown, the first step is to contact your lender immediately and let them know what’s going on. They may be able to help with a forbearance plan or repayment assistance.

Even with the shutdown, a lender can manage your loan, including those backed by the Federal Housing Administration or VA, and help you with forbearance or repayment.

Your mortgage servicer likely won’t be able to help you with refinancing a government-backed mortgage from the FHA or VA during a shutdown, or verify active-duty military status as quickly for SCRA protections.

Some ways to protect yourself if you are facing foreclosure on your home during a government shutdown are:

• If you have an Federal Housing Administration [FHA} mortgage, you can find loss mitigation programs that can help you keep your home through its National Servicing Center.
• Find a HUD-approved housing counselor to help you navigate your finances and options. HUD doesn’t have to be operating at full steam for you to find a counselor approved by the agency. Your state’s housing authority can help, or you can find one through the Consumer Financial Protection Bureau’s Find a Counselor page.
• If you are in the miliary, the SCRA requires a court order before your home can be foreclosed on if you took out the mortgage before going into the military. This protection lasts for 12 months after you leave the military. You can also ask for a mortgage interest rate reduction to 6% (including service charges and fees) for the length of your active duty, plus 12 months after you leave it.

Alternative Housing Resources While HUD Is Closed

If you’re looking for alternative housing resources during a government shutdown, your state housing authority or agency is still the best first stop. HUD may be closed, but the housing authority will still be operating. Though much of their funding comes from HUD, they are not federal agencies.

To find your local PHA, check out HUD’s interactive map.

Nonprofit organizations like Habit for Humanity, Catholic Charities and The Salvation Army also have programs that help provide housing or other services that can keep you housed. The Housing Assistance Council last a variety of nonprofit resources.

Another alternative is a credit counseling agency, like InCharge.org. InCharge is HUD-approved credit counselor, and offers housing counseling, that includes foreclosure prevention counseling and information, as well as eviction protection help.

InCharge homebuyer education courses, counseling and workshops can also help you make a good housing decision that works with your budget that will be sustainable during hard times and shutdowns, as well as good times. If you’re not in a financial place to buy a house, the housing tools can help you get there.

A nonprofit credit counseling agency doesn’t charge a fee for counseling, and can provide you with resources to help with issues that are beyond the specific housing challenge you may have. Tools that can help with financial literacy and budgeting build a foundation that will help you pay for housing, in normal times as well as during a government shutdown.