There’s concern among housing advocates and low-income families after President Donald Trump’s latest budget proposal outlines major cuts to the U.S. Department of Housing and Urban Development (HUD), with the most devastating impact falling on Section 8 rental assistance programs.
According to the proposed fiscal year 2026 budget, the Trump administration seeks to slash HUD funding by $32.9 billion—nearly halving the department’s current budget. Most notably, the plan calls for the complete elimination of three major rental assistance programs. The remainder would be consolidated into a new “State Rental Assistance Block Grant,” effectively dismantling the federal Section 8 Housing Choice Voucher program as we know it.
Instead of federal oversight and guaranteed support for low-income renters, states would be given broad discretion to design and administer their own programs. Critics argue this shift would leave millions vulnerable to housing instability and homelessness, especially in states with little incentive—or ability—to meet the demand for affordable housing.
“This budget would decimate the federal safety net that keeps low-income families housed,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition. “States are simply not equipped to replicate the scale or efficiency of the current federal program, and vulnerable populations will fall through the cracks.”
