Trump Proposes 51% Cut to Federal Housing Programs

President Trump has released his proposed budget for fiscal year 2026, and one part of it has shocked housing advocates, lawmakers, and families across the country. The plan includes a 51% cut to the Department of Housing and Urban Development (HUD). If approved, HUD’s budget would shrink by nearly half, reducing the resources available to help families, seniors, and people with disabilities afford a safe place to live.

For millions of Americans who rely on housing assistance, this proposal is more than numbers on a page. It could mean longer waits for help, fewer Section 8 vouchers, and less support for communities struggling with homelessness. In this article, we’ll break down what this proposal includes, why it matters, and what you can do if you depend on housing programs.

What’s Being Cut?

HUD currently runs many different programs that all work together to provide affordable housing, improve neighborhoods, and reduce homelessness. Under the proposed budget, many of these programs would be eliminated or folded into a single block grant that goes to states. On paper, this looks like “simplification,” but in practice it would mean a huge funding drop.

Here’s what’s on the chopping block:

Section 8 Housing Choice Vouchers. These are the vouchers families use to rent apartments in the private market. Without them, many people would have no way to pay their rent. Both tenant-based and project-based vouchers are included in the cuts.
Public Housing. HUD-owned apartments and homes would lose significant funding for repairs and maintenance, putting residents at risk of unsafe living conditions.
Community Development Block Grants (CDBG). Cities and towns use these funds to improve infrastructure, build housing, and support local services.
HOME Investment Partnerships (HOME). This program helps create new affordable housing units. Without it, fewer affordable homes would be built each year.
Housing for Persons with AIDS (HOPWA). This program provides stable housing for people living with HIV/AIDS.
Continuum of Care (CoC). A key program for addressing homelessness, funding emergency shelters, transitional housing, and services for people without stable homes.

All of these would be combined into one state-level block grant. The proposed funding for that grant is $31.7 billion, compared to nearly $58 billion currently spent on rental assistance. According to HUD.gov, the overall HUD budget would fall to about $43.5 billion—$45 billion less than last year.

What This Means for Families

For families, seniors, and individuals already struggling with high rents and low wages, the impact would be dramatic. Let’s look at what this could mean in everyday terms:

Longer Waiting Lists. Many cities already have Section 8 waiting lists that are years long, or even permanently closed. With fewer vouchers available, those lists could become impossible to get through. Families who were hoping for relief may never see it.
Losing Current Housing. Families already using vouchers could be affected if their housing authority cannot renew contracts with landlords. A mother renting a two-bedroom apartment for her kids, for example, could suddenly find herself without help to pay rent.
Fewer Safe Options. Public housing communities depend on federal funds to repair roofs, fix heating systems, and keep apartments safe. With big cuts, more units may fall into disrepair and become unlivable.
Greater Risk of Homelessness. Without rental assistance, more families could face eviction. Seniors living on fixed incomes and people with disabilities who rely on supportive housing could be hit especially hard.
Less Help After Disasters. Programs that provide funds after hurricanes, floods, or fires would be scaled back. Families might not get the support they need to recover.

The numbers show just how deep the problem is. HUD reports that in 2023, about 4.5 million households received federal rental assistance. With this proposal, that number could drop to 2.4 million households—meaning more than two million families would lose help.

What Advocates and Lawmakers Are Saying

The proposal has drawn criticism from across the political spectrum. Housing advocates warn that this is one of the most severe cuts in HUD’s history. According to the National Low Income Housing Coalition, eliminating or shrinking these programs would “devastate millions of low-income families” and worsen the nation’s housing crisis.

Even some Republican lawmakers have expressed doubts. They argue that slashing housing assistance in half could hurt vulnerable groups like veterans, seniors, and children. Representative Mike Quigley of Illinois, a long-time advocate for affordable housing, stated clearly: “People will die.” His concern highlights that cuts of this size aren’t just budget adjustments—they could lead directly to increased homelessness and preventable hardship.

HUD Secretary Scott Turner, however, defended the plan, saying it would make programs “more effective and efficient.” Critics point out that efficiency doesn’t help when the funding itself is disappearing.

Why Section 8 Users Should Pay Attention

If you’re applying for or already using Section 8 assistance, this proposal matters directly to you. Local housing authorities run these programs, but they depend on federal dollars. With less funding:

Authorities may stop issuing new vouchers.
Families on the waiting list may never get called.
Renewal of existing vouchers could become harder, leaving families unsure if their rent will still be covered.

This isn’t just a future problem. The stress of uncertainty can affect families now—making it harder to plan, budget, or feel secure in their homes.

That’s why it’s important to also look at how states are responding. Some states are already building their own housing programs to support families in case federal funding drops. If you’re curious about these alternatives, you can read our post on how state housing programs are expanding to help families beyond Section 8.

The Bigger Picture: Housing Costs Are Rising

This proposal comes at a time when housing costs are already a major burden. The Urban Institute reports that more than 20 million renter households spend over 30% of their income on rent, which is considered “cost-burdened.” Many spend over half their income just to keep a roof over their heads.

At the same time, homelessness has been increasing in many parts of the country. In 2024, HUD’s annual report showed that more than 650,000 people were experiencing homelessness on a given night. Cutting programs that provide rental help, emergency shelter, and permanent supportive housing will likely make this number climb.

What You Can Do

It’s easy to feel powerless when hearing about budget cuts, but there are steps you can take to make your voice heard and protect your family.

Contact Your Representatives. Congress controls the budget. You can find and contact your elected officials through USA.gov. A simple phone call or email explaining how housing assistance helps your family can have an impact.
Get Involved Locally. Many cities have tenant unions, housing nonprofits, or local advocacy groups. These organizations can help you stay informed, provide resources, and even connect you with legal aid if needed.
Stay Informed. Follow updates directly from HUD.gov, your local housing authority, and trusted housing organizations. Knowing what’s happening will help you prepare for any changes.
Explore State Programs. Some states are creating their own rental assistance or housing trust funds. These won’t replace Section 8, but they can provide help if federal support is reduced.

Final Thoughts

The proposed 51% cut to HUD is not yet law. Congress will debate and decide how much funding to approve. But the proposal itself is a warning that housing assistance is at risk.

For families already struggling with high rents, losing federal help could be devastating. This is the time to speak up, stay connected to your local housing authority, and learn about other resources that might be available in your state.

Affordable housing is more than just a policy issue. It’s about children having stable schools, seniors aging safely in their homes, and families being able to plan for the future. Whether or not these cuts happen, the message is clear: housing advocates and everyday people must continue pushing for safe, stable, and affordable homes for all.

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