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May 15, 2025

HUD proposes $26 billion cut to rental assistance and two-year time limits

Associated Press
themortgagereports.com
Associated Press
Government Executive
National Low Income Housing Coalition
+4

Trump budget slashes Section 8 funding by 43% while HUD halts fair housing enforcement

HUD Secretary Scott Turner released the FY2026 budget proposal on May 30, 2025, slashing funding for rental assistance programs by $26.72 billion, an unprecedented 43% cut from the previous year.

The proposal would combine Section 8 Housing Choice Vouchers, Public Housing, Project-Based Rental Assistance, Section 202 Housing for the Elderly, and Section 811 Housing for Persons with Disabilities into one State Rental Assistance Block Grant funded at $31.79 billion.

The administration proposed two-year time limits on rental assistance that would place more than 3 million people at risk of eviction and homelessness, half of them children. The Center on Budget and Policy Priorities found 2 million people in working households would be cut off.

Only one in four households eligible for federal housing assistance actually receives it due to Congress's failure to adequately fund affordable housing programs. About 770,000 people experience homelessness on any given night in the U.S.

A January 2025 federal funding freeze halted disbursements for all major HUD programs: Section 8 Housing Choice Vouchers, Homeless Assistance Grants, Public Housing funds, HOME Investment Partnerships, and Community Development Block Grants.

Executive Order 14218, 'Ending Taxpayer Subsidization of Open Borders,' issued February 19, 2025, directed HUD to restrict housing assistance for noncitizens. Section 214 of the Housing and Community Development Act already prohibits HUD assistance for undocumented immigrants.

The House Appropriations Committee approved $35.3 billion for tenant-based rental assistance and $17.1 billion for project-based rental assistance on July 17, 2025. Committee chairs expressed deep concern over the proposed cuts, suggesting Congress may preserve the current program structure.

📋Public Policy✊Civil Rights

People, bills, and sources

Scott Turner

HUD Secretary

President Donald Trump

President of the United States

U.S. District Judge Jon Tigar

Federal Judge, Northern District of California

Brian Hawkins

Trump appointee at HUD

What you can do

1

civic action

File a fair housing complaint if you face discrimination

Despite enforcement cuts, you can still file fair housing complaints with HUD. Document all discrimination evidence including communications, dates, and witnesses.

2

civic action

Attend your local Public Housing Authority board meeting

PHA boards make decisions about voucher allocation and local housing policy. Public attendance puts pressure on local administrators and gets your voice on the record.

3

civic action

Contact your senators and representative about FY2026 HUD funding

The House Appropriations Committee rejected Trump's cuts. Congress will finalize HUD funding through appropriations. Tell your representatives you oppose time limits and block grants.

Hello, I'm [NAME] from [CITY]. I'm calling about HUD funding in the FY2026 budget. I oppose the 43% cut to rental assistance, the proposed two-year time limits, and converting programs to block grants. The House Appropriations Committee rejected these cuts, and I urge [Representative/Senator NAME] to support full funding for Section 8 and public housing. Thank you.