HUD spends $30M on jobs plan few use. Almost 50% of work eligible households receiving HUD funding don’t have a single person working.

The Department of Housing and Urban Development has allocated $30 million toward a jobs program designed to help work-eligible households transition into employment. Despite the funding, nearly 50 percent of HUD-assisted households that qualify for work have no employed members, raising concerns about the effectiveness of the initiative.

Federal officials launched the program with the expectation that it would increase workforce participation among low-income families receiving housing assistance. The plan included job training, placement services, and financial incentives aimed at encouraging employment. However, participation rates have remained shockingly low, with many recipients choosing not to engage in the program.

HUD’s budget breakdown reveals that millions have been spent on administrative costs, outreach efforts, and partnerships with local agencies. Yet, the number of households successfully transitioning into employment remains far below projections. Critics argue that the program lacks accountability, allowing funds to be absorbed by bureaucratic inefficiencies rather than directly benefiting job seekers.

The issue extends beyond HUD’s employment initiative. Government data shows that workforce participation among subsidized housing recipients has been declining for years, despite repeated efforts to incentivize employment. Some analysts suggest that rising welfare benefits and expanded social programs have reduced the urgency for recipients to seek work.

Policymakers are now debating whether HUD should restructure the program or redirect funds toward more effective solutions. Some lawmakers propose mandatory work requirements for able-bodied recipients, arguing that taxpayer-funded assistance should encourage self-sufficiency rather than long-term dependency.

Sources:

https://www.hud.gov/sites/dfiles/CFO/documents/2025_Infographic-Final_v3_3-8-24_450PM.pdf

https://www.mass.gov/doc/fy2025-moving-to-work-annual-plan-approved-81424/download

https://malegislature.gov/Budget/FY2025/HouseWaysMeansBudget/Executive_Summary