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HUD Tried to Cut $26 Billion in Housing Aid. 170,000 People Almost Lost Their Homes.

Resist Now 3 min read
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The Number That Tells the Story

The Trump administration asked Congress to cut HUD’s budget by 44%, or $45.6 billion. That would have been the largest single-year reduction in federal housing assistance ever proposed. Congress rejected most of the cuts and passed a bill providing $77.3 billion to HUD, a $7.2 billion increase over FY2025.

But the budget fight was a distraction. While Congress held the line on funding, HUD quietly rewrote program rules that threaten to push 170,000 formerly homeless people back onto the street.

What the Administration Proposed vs. What Congress Passed

ProgramFY2025 FundingTrump ProposedCongress Enacted
Section 8 Vouchers$36.0BEliminate/consolidate$38.4B
Project-Based Section 8$16.9BEliminate/consolidateFunded
Public Housing Fund$8.8BEliminate/consolidateFunded
Homeless Assistance Grants$4.05B$4.02B (-$27M)Increased
CDBG$3.3B$0Funded
HOME Program$1.25B$0Funded
HOPWA (HIV/AIDS housing)$505M$0Funded

The administration wanted to replace most rental assistance with a single $36.2 billion State Rental Assistance Program, a $26.72 billion cut disguised as a consolidation. Congress said no.

The Rule Change That Matters More Than the Budget

Congress saved the funding. HUD changed the rules anyway.

A new funding notice for the Continuum of Care program caps the share of funding that can pair rental assistance with supportive services at 30%. The previous cap was 87%. That gap means formerly homeless people who need case management, mental health services, or substance abuse treatment alongside their housing voucher will lose the support that kept them housed.

“HUD estimates that its own rule change would take housing assistance away from more than 170,000 formerly homeless people.” — Center on Budget and Policy Priorities

Meanwhile, Emergency Housing Vouchers run out of money in 2026. That program serves over 50,000 households. When the funding stops, those families have no fallback.

Homelessness Is Already at Record Levels

The most recent national count found 770,000 people experiencing homelessness on a single night, up 18% from the previous year. Some cities saw sharp increases: New York, Albuquerque, Portland, Atlanta, and Boston all reported rising numbers.

The 2026 Point-in-Time Count is still being compiled nationally, but early local data shows the picture is mixed. Alameda County reported a 13% drop. Fairfax County saw a 3% increase.

What the numbers cannot capture: the CBPP estimates that proposed funding levels in earlier House and Senate bills would have left 600,000 more people struggling to pay rent, with many at direct risk of eviction.

What You Can Do

  1. Tell your members of Congress to block the CoC rule change. The 30% services cap is an administrative decision, not a law. Congressional pressure can reverse it. Use Resist Bot to write your representatives.
  2. Demand Emergency Housing Voucher funding. The program expires in 2026 with no replacement. Congress needs to extend it before 50,000 households lose assistance.
  3. Push for FY2027 protections now. The administration will propose similar cuts next year. Your representatives need to hear that housing funding is not negotiable before the next budget cycle starts.
  4. Support local Continuum of Care programs. Find your local CoC through HUD’s directory and show up at public meetings where funding decisions are made.

The budget fight proved Congress will protect housing funding when voters demand it. The rule changes prove the administration will find other ways to cut. Both fights require showing up.

This brief supports the Housing hub on Resist Now.

Sources

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