Michigan housing agency cancels training program following Trump admin. funding freeze

Yahoo

28-01-2025

Getty Images
The impact from a Trump administration order to temporarily stop payments on multiple federal programs is already being felt in Michigan.
The Michigan State Housing Development Authority (MSHDA) issued a release Tuesday canceling a training that had been scheduled for a proposed pilot program under MSHDA's single-family mortgage program.
Trump administration memo announces abrupt freeze on broad swath of federal payments
'You may have seen that the federal Office of Management and Budget has directed all federal agencies to temporarily pause the obligation and disbursement of federal financial assistance while they evaluate whether any activities are impacted by recent Presidential executive orders,' the release said. 'Our agency is part of state government and has not been directly asked by the federal government to do anything as part of this directive. But we do receive federal funding for some programs, and the federal government contributes to some housing projects that we help finance.'
The release cited the decision to cancel Tuesday's training being taken 'out of an abundance of caution,' but also said that to preserve the stability of the agency, MSHDA was pausing all new programs from launching 'for the time being.'
The decision by MSHDA follows a two-page memo issued by the Office of Management and Budget announcing the freeze and which appeared to apply to all federal financial assistance, including grants and loans.
In response to that memo, Michigan Attorney General Dana Nessel, a Democrat, issued a statement saying her department was aware of state services including Medicaid and Head Start being affected.
'We are receiving reports of critical impacts to significant programs many millions of Michiganders rely upon daily for vital services,' said Nessel. 'We hear and share your direct and dire concerns. My team is working at full speed today to discern what these orders mean and the extent of their immediate impacts, and request an immediate legal remedy to restore funding provided by Congress, require this administration to comply with the law, and to stop this absurd and unprecedented attack on these programs. I intend to file litigation today to protect these programs and restore these vital services.'
The decision by MSHDA to cancel the training also follows an executive directive issued by Gov. Gretchen Whitmer last Friday which asked state departments and agencies to review executive orders issued by President Donald Trump for compliance on programs receiving federal funds. However, Whitmer's directive was focused on a specific set of orders designed to halt diversity, equity and inclusion (DEI) policies at the federal level, eliminate the so-called 'electric vehicle (EV) mandate, and declare that the male and female genders are an 'immutable biological classification.'
While MSHDA said it regretted canceling the pilot program training, it clarified that its existing programs for single-family mortgages, including the MSHDA Rate Relief Mortgage, the MI Home Loan Mortgage and MI 10K Down Payment Assistance, would not be impacted by the pause.
SUPPORT: YOU MAKE OUR WORK POSSIBLE