HUD Announces Employee Furloughs Due to Sequestration

In a memo to staff sent on Feb. 28, Deputy HUD Secretary Maurice Jones said “the impact of sequestration on HUD programs will be dramatic.” The Secretary has testified that over 200,000 people will lose their HUD-funded housing assistance and that HUD must also reduce its salaries and expenses by $66.6 million.

The memo also announced that HUD will furlough all 9,000 of its employees for seven days between May and August in a bid to reduce costs due to sequestration. This will effectively result in a shutdown of the department on those days. HUD doesn’t plan to start implementing furloughs before May. The proposed furlough dates are May 10 and 24; June 14; July 5 and 22; and Aug. 16 and 30.

In addition to furloughs, HUD is also reviewing spending on contracts, equipment, travel, and training. When sequestration went into effect March 1, the department imposed an agency-wide hiring freeze, according the memo.