The Trump administration is seeking to cut nearly $11 billion from the Department of Housing and Urban Development (HUD) budget in fiscal 2027.
In its recently released budget proposal, the administration calls for eliminating the Community Development Block Grant, HOME Investments Partnership, Housing Opportunities for Persons With AIDS, and the Native Hawaiian Housing Block Grant programs. In addition, funding for homeless assistance and Section 202 housing for the elderly programs would be reduced.
Under the proposal, HUD’s gross discretional budget authority would be slashed about 13% from $84.2 billion in fiscal 2026 to $73.5 billion in fiscal 2027.
“While the request does not reiterate some of the most egregious proposals in last year’s budget request, it nevertheless fails to provide the resources and vision required to meet the affordable housing needs of communities across the nation,” said Renee M. Willis, president and CEO of the National Low Income Housing Coalition. “Despite widespread, bipartisan, bicameral agreement on the need to increase the nation’s supply of affordable, accessible housing, the proposal zeros out funding for programs that help with affordable housing construction. The White House also continues pushing ineffective, outdated methods of addressing homelessness, proposing to shift funding away from programs that provide people permanent housing with services and toward short-term assistance that is less effective and more expensive.”
In a change from last year’s proposal, the administration is no longer seeking to restructure HUD’s major rental assistance programs into one block grant and reduce funding. Instead, the structure will remain the same.
The proposal seeks $38.8 billion for the Housing Choice Voucher program, a slight increase from $38.5 billion in fiscal 2026.
However, funding for project-based rental assistance is proposed at $17.7 billion, a nearly 5% cut from $18.6 billion this fiscal year.
Many of the proposed cuts have been sought by the administration in the past but have been rejected by Congress.
Although it is unlikely that the administration’s plan will pass this time as well, advocates say they and policymakers must make sure housing programs are fully supported.
“At a time when more people than ever are struggling to afford the cost of housing, Congress should be working to expand—not slash—federal investments in programs proven to help people find and maintain a safe place to call home,” Willis said.