Trump budget cuts HUD rental assistance 44%, shifts to states

Trump's May 2025 budget proposes cutting HUD by $32.9 billion, from $77 billion to $43.5 billion. That's a 44% reduction in the department's total funding.

The proposal consolidates Section 8 vouchers, public housing, project-based rental assistance, and Section 202/811 programs into a single block grant for states. The block grant would be $26.7 billion less than current program funding.

A two-year time limit would apply to rental assistance for able-bodied adults. HUD Secretary STScott Turner said the goal is to get people off subsidies and live a life of self-sustainability.

The White House called the current federal rental assistance system dysfunctional. States would design their own programs based on their unique needs and preferences.

Congressional Republicans on House and Senate appropriations subcommittees expressed deep concern over the proposed cuts. Both chambers voted in July to reject the 44% cuts and block-granting.

Neither chamber's spending bill fully covers existing vouchers. Under the House bill at 2025 funding levels, an estimated 181,900 households would lose rental assistance. Under the Senate bill, 107,800 would.

Funding Section 8 at 2025 levels with no increase for rising rents could result in over 400,000 fewer people receiving vouchers, according to the Center on Budget and Policy Priorities.