The Trump administration has called for the elimination or reduction of longtime housing programs in its fiscal 2026 budget request.
The proposal includes the elimination of the Community Development Block Grant, HOME, and Fair Housing Initiatives programs.
The request sets up a showdown over federal spending. President Donald Trump proposed similar housing program cuts during in his first term, but Congress largely blocked the proposals.
In the latest budget outline, the administration seeks to cut $26.7 billion from rental assistance programs as well as overhaul these programs into a new “state-based formula grant, which would allow states to design their own rental assistance programs based on their unique needs and preferences.”
The proposal also wants to institute a new two-year cap on rental assistance for “able-bodied adults and would ensure a majority of rental assistance funding through states would go to the elderly and disabled,” according to the budget request, also known as the “skinny budget,” which foreshadows a budget request that is expected to slash non-defense spending by 22.6% next year.
Housing advocates slammed the proposed cuts to the Department of Housing and Urban Development (HUD) budget, saying that the cuts will only worsen the nation’s housing crisis.
“The proposals outlined in this preliminary request are not only untenable, they are unconscionable,” said Renee Willis, interim president and CEO of the National Low Income Housing Coalition. “At a time of rapidly rising rents, increasing economic hardship, and a record number of people experiencing homelessness, the administration should be asking Congress to expand—not slash—federal investments in affordable housing and homelessness assistance, and working with Congress and communities to ensure these vital resources are available to every household in need.”
HUD secretary Scott Turner issued a statement in support of the plan.
“President Trump’s bold budget proposes a reimagining of how the federal government addresses affordable housing and community development. It rightfully provides states and localities greater flexibility while thoughtfully consolidating, streamlining, and simplifying existing programs to serve the American people at the highest standard,” he said. “It creates the opportunity for greater partnership and collaboration across levels of government by requiring states and localities to have skin in the game and carefully consider how their policies hinder or advance goals of self-sufficiency and economic prosperity. Importantly, it furthers our mission-minded approach at HUD of taking inventory of our programs and processes to address the size and scope of the federal government, which has become too bloated and bureaucratic to efficiently function. I look forward to continuing budgetary conversations in the months ahead as we get our fiscal house in order and maximize HUD’s budget for the rural, Tribal, and urban communities we are called to serve.”
Industry Reaction
“President Trump’s proposed 2026 housing budget will drive up homelessness and force apartment owners and operators out of business. The budget proposal cuts nearly 44% from the Department of Housing and Urban Development—gutting critical housing and homelessness programs and eliminating highly successful and bipartisan programs like HOME and Family Self-Sufficiency. Further, the budget calls for the elimination of NeighborWorks America—a highly effective organization that serves the housing needs of communities throughout the United States, especially in underserved rural areas in red states. These proposed reductions would have a devastating impact on millions of Americans, particularly the most vulnerable among us, and would directly lead to increased homelessness across the country and the bankruptcy of many private businesses that own and operate affordable housing.
“We are confident that this Congress will do the right thing by rejecting these politically unsupportable cuts and instead prioritize the stability and security that safe, affordable housing provides to families and communities. Housing unaffordability and instability has become an increasingly bipartisan problem with bipartisan support. The National Housing Conference will continue to work with leaders on both sides of the aisle to ensure that housing remains a bipartisan issue and that proven programs are protected and strengthened—not weakened."—David M. Dworkin, president and CEO, National Housing Conference
“President Trump's proposed $33 billion cuts to public housing, rental assistance, and housing for our most vulnerable communities in the federal budget are inhumane and devastating. The impact will be felt across the nation, from families that rely on Section 8 to seniors and people with disabilities who face losing stable, supportive housing. This plan will drive more people into homelessness, especially in places like New York where two-year limits on housing subsidies would push thousands of people into crisis. It dismantles the federal safety net, shifts the burden of housing America’s poorest renters onto states and the private sector, and abandons millions of people in need. It’s cruel, short-sighted, and will cause irreversible harm to the lowest-income renters. Congress must reject this budget and prioritize investments that keep people housed.”—Rachel Fee, executive director, New York Housing Conference
“Slashing essential housing programs like HUD’s rental assistance and block grant programs will only worsen the historic housing crisis and erase hard-fought progress toward building affordable housing. These cuts won’t just affect large cities; their impacts will ripple across small towns, rural areas, and Tribal communities. Without viable alternatives, cutting housing programs will drive up the cost of living and place heavier burdens on seniors, low-income families, veterans, and millions of others who rely on stable, affordable housing to thrive.”—Shaun Donovan, CEO and president of Enterprise Community Partners and former HUD secretary
“All Americans, across race, place, and party, value the freedom to make a good living, care for our families, and live in a stable home. President Trump’s proposed budget cuts life-saving programs that keep poor and working people housed, fed, and healthy. This comes on top of three months of unlawful attacks by Trump and Elon Musk on the basic infrastructure of our government. Congress must do its job, ignore Trump’s budget proposal and return to governing. That starts with a fully funded budget that protects us all from harm and prevents evictions of the most vulnerable families. Our country’s budget must serve all of us and not just the billionaires.”—Shamus Roller, executive director, National Housing Law Project
