Proposed budget shifts housing responsibilities
President Donald Trump’s proposed 2026 federal budget calls for major reductions to housing assistance programs, cutting $33.6 billion from the Department of Housing and Urban Development (HUD) as part of a broader plan to slash $163 billion in nondefense spending.
A report from Realtor.com highlighted that the administration’s budget draft, submitted to the Senate Appropriations Committee, argues that federal housing programs are “dysfunctional” and that states should take the lead in addressing housing needs. The largest reduction—$26.7 billion—would come from eliminating the State Rental Assistance Block Grant, which funds public housing and rental assistance for low-income families, the elderly, and people with disabilities.
The proposal also seeks to eliminate the Community Development Block Grant (CDBG), a $3.3 billion program that supports affordable housing, infrastructure, and local development. The administration criticized CDBG as “poorly targeted,” citing previous use of funds for arts programs and recreational facilities.
Additionally, the HOME Investment Partnerships Program—which helps local governments build and subsidize affordable housing—would lose $1.25 billion, effectively ending the program. Funding for Native American and Native Hawaiian housing programs would be cut by nearly $480 million.
HUD’s Self-Sufficiency Programs, aimed at helping recipients of housing aid gain financial independence, would also be defunded, losing $196 million.
The administration plans to consolidate two major homelessness and health housing programs—Continuum of Care and Housing Opportunities for Persons with AIDS (HOPWA)—into a single Emergency Solutions Grant, saving over $500 million.
Fair housing enforcement would also be affected. The Fair Housing Initiatives Program (FHIP), which supports nonprofit fair housing organizations, would lose its entire $60 million budget. The administration claims the program promotes “radical equity policies.” However, the Fair Housing Assistance Program (FHAP), which funds local and state enforcement agencies, would be preserved.
The proposed cuts come amid rising concerns over housing affordability and homelessness nationwide. Critics say the reductions would strip essential resources from vulnerable communities.
“President Trump has made his priorities clear as day: He wants to outright defund programs that help working Americans,” said Sen. Patty Murray of Washington, the top Democrat on the Senate Appropriations Committee.
While presidential budgets are nonbinding, they signal policy priorities and influence congressional negotiations. Final spending decisions will be made by Congress through the appropriations process.
What are your thoughts on the potential impact of these proposed budget cuts? Share your insights below.
