President Trump has introduced a budget proposal that suggests significant cuts to non-defense discretionary spending, totaling $163 billion for fiscal year 2026, which spans from October 1, 2025, to September 30, 2026. Among the proposed reductions, the U.S. Department of Housing and Urban Development (HUD) would face a substantial 44% cut, equating to approximately $33.6 billion.
It’s crucial to understand that while the White House drafts a budget, it is not guaranteed to be accepted in its current form by Congress. The appropriation process—led by lawmakers—will ultimately shape the final spending levels for federal departments and agencies, including HUD.
The proposed budget includes various changes to HUD programs, such as:
– An overall reduction of more than $26 billion for multiple rental assistance initiatives, which encompass Project-Based Rental Assistance, Housing Choice Vouchers, public housing, and others, with the intention of giving states more control in designing their housing strategies.
– The removal of funding for the Community Development Block Grant program.
– The cancellation of the Home Investments Partnerships Program.
Although these cuts are unlikely to come to fruition, the National Association of Home Builders (NAHB) plans to keep a close watch on the appropriations process to observe how funding decisions unfold for essential housing, tax, labor, and environmental programs.
This budget proposal highlights the ongoing debates around federal funding and housing assistance in the U.S., stirring discussions on the necessity of investments in housing for vulnerable populations. While the proposed cuts may seem alarming, they open the door for renewed conversations about flexibility in state-level housing strategies and increased local governance in addressing housing needs. Such discussions could lead to innovative approaches and solutions within the communities affected.