On Sept. 4, the U.S. Department of Housing and Urban Development (HUD) submitted notice of its intent to publish a document in the Federal Register outlining a departmental reorganization involving changes to its headquarters and field operational structure.

Later that day, the department submitted a letter requesting the withdrawal of that notice, which had been scheduled for publication on Tuesday. No reason was provided.

HUD did not immediately respond to a request for comment on the withdrawn notice, but an unpublished draft reviewed by Scotsman Guide reveals sweeping proposals to streamline the department’s organizational framework.

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The measures include a consolidated office structure for the Office of Fair Housing and Equal Opportunity; realignment of Ginnie Mae branches and the creation of a division focused on data and market analysis; and a shift from a geographic to a function-based model for the single-family division of the Federal Housing Administration.

Another administrative change would eliminate the distinction between headquarters and regional field offices in the Office of General Counsel, with attorneys nationwide reporting to one of three deputy general counsels.

Additionally, due to previous staffing reductions, the Office of Public and Indian Housing would consolidate and realign operations to merge public housing responsibilities into one office and voucher programs into another.

The withdrawn notice indicated that no new staffing reductions or relocations were proposed, but it acknowledged the plan was driven by prior downsizing efforts.

“Current staffing levels are almost 35 percent below historic staffing levels and this reorganization will provide HUD with the ability to operate even more effectively at current staffing levels, ultimately carrying forward savings from the reduced salaries and expenses of the Department,” the document reads.

In April 2025, more than 2,000 HUD employees accepted deferred resignation offers as part of a controversial “Fork in the Road” program. During the government shutdown period at the end of last year, 442 workers received layoff notices, though a federal judge stepped in to block the reduction in force.

The document noted that the proposed reorganization represented a follow-up to a large-scale department overhaul outlined to Congress on April 3, 2026, as part of the Trump administration’s discretionary budget request for fiscal year 2027.

HUD’s request included a 13% reduction in funding compared to 2026 levels — to $73.5 billion from $84.2 billion. It included proposals to eliminate more than $4 billion in funding for grant programs such as the Community Development Block Grant and the HOME Investment Partnerships Program.