How Federal Changes are Impacting Habitat’s Work and What You Can Do to Help

As you might anticipate, Twin Cities Habitat relies on public funding from all levels of government to fund our developments and get our work done. As such, we engage with elected leaders at each level of government to advance our mission, and this includes the federal government. Given how often things change, it can be hard to keep track of everything going on or what to do about it, but we’re here to make it easier. Each year, we advocate at the federal level during Habitat on the Hill in Washington, D.C., where we get to share valuable staff expertise, inspiring stories from Habitat homeowners, and highlight the need for advancing affordable homeownership. We also advocate outside of Habitat on the Hill when there are new developments, like the recent government shutdown.  

Habitat staff and homeowners advocating at Habitat on the Hill in Washington D.C.

Given how often things change, it can be hard to keep track of everything going on or what to do about it, but we’re here to make it easier. Below, we’ll answer questions about the shutdown and other federal changes, what they mean for our work, our legislative priorities this year, and how you can take action to help get them across the finish line.  

What’s the status of the government?  

Last week, Congress passed a deal to end the government shutdown, which occurred after lawmakers were unable to reach a budget agreement before their October 1 deadline. The deal included three full-year spending bills for certain departments and a continuing resolution to fund the rest of the government at existing levels through January 30. It did not include the healthcare tax credit extension that had been a sticking point throughout the shutdown. 

Congress will need to continue finalizing the rest of the spending bills before this continuing resolution ends, meaning there is a possibility of another shutdown if agreements aren’t reached by January 30. As this became the longest government shutdown in American history, impacts became widespread for communities across the country. Despite the shutdown ending, it’s unlikely that things will go back to normal right away, and its effects are still being felt in many areas. 

How are federal changes impacting our work?  

The government shutdown was a large factor from the federal government that impacts our work but not the only one. Actions from Congress and the administration around executive orders, annual appropriations, and new laws can also affect us. Currently, all our core programs continue, and federal funding has not changed our operations or staff’s job security. This includes the AmeriCorps program, which received major cuts and efforts to dismantle it nationally. 

AmeriCorps members working on a project for Habitat.

Fortunately, these have not significantly affected our program at this time, but we remain concerned for potential impacts that may come. 

The government shutdown has delayed funding we use to support homebuyers, particularly through the Community Development Financial Institution (CDFI) Fund, and will likely reduce the number of homebuyers we can support this winter and spring. 

While the exact effects of this are still unfolding, we are continuously monitoring the situation to best prepare our organization and clients for potential impacts. 

What are we advocating for at the federal level? 

We are actively advocating at the federal level to preserve and protect the programs that our organization and communities rely on. Here are a few things we've been focused on recently, and what we’re looking at down the road:  

• Throughout the shutdown, we met with congressional offices to highlight the local impacts that the shutdown and Reduction in Force (RIF) notices were having on our work and for those we serve.  

• Last month, we focused efforts on contacting Republican Congressional Members to defend the CDFI Fund from cuts, after the administration’s decision to layoff all employees at the Fund during the shutdown. CDFI’s are financial institutions that provide affordable financial services and resources to underserved communities, and the Fund is a critical resource in being able to do so.  

• We are tracking the ROAD to Housing Act (Renewing Opportunity in the American Dream to Housing Act), which has passed the Senate and will be considered in the House. This bipartisan package is aimed at increasing housing supply and affordability. 

• In February, we will spend a week in Washington, D.C. advocating directly to members of Congress at Habitat on the Hill. Our legislative priorities are shaped around goals to increase the supply, broaden access to homeownership, and preserve affordability to ensure residents can stay in their homes. Even in the event of another shutdown, we are committed to elevating the following priorities to Congress:  

• Preserve and increase funding for the HOME Investment Partnerships (HOME) and Community Development Block Grant (CDBG) programs, and the CDFI Fund, which are vital resources for housing production and affordability. Costs have increased across the board in construction and housing, so these programs are essential in making homeownership accessible. 

• Create tax incentives for starter homes, including passing the Neighborhood Homes Investment Act to mobilize private investments in under-resourced neighborhoods through federal tax credits. 

• Create a Homeownership Supply Accelerator, which would provide flexible financial tools to help the construction and rehabilitation of homes for low and moderate-income buyers. There is currently no federal program dedicated solely to the development of starter homes, and this would be a major step forward in addressing our supply gap.  

• Support investments into the AmeriCorps program, whose members are essential to our ability to build and rehabilitate homes.  

Habitat homebuyers with their kids at closing.

How can you help?  

Click below to contact members of Congress, where you can urge them to prioritize affordable homeownership programs. Your voice matters, and representatives value hearing directly from constituents. We’ve drafted a letter already, but you can change it as you see fit, including sharing your own story or why affordable homeownership matters to you. 

You can also sign up for action alerts to stay informed on ways to get involved. We will keep you up to date on new developments and ways to advocate with your representatives.  

Lastly, you can also help by staying involved in your community. This can look like volunteering with or donating to local organizations such as local food banks, and checking in on your neighbors and those around you. 

Many families were impacted by the shutdown and other federal changes, and we have resources and services designed to support some of those facing financial instability. If you are a Habitat homeowner in need of help, please reach out to us.