HUD Draft Rules Could Drastically Cut Housing Aid for Millions

A New Phase of Housing Reform?

The US Department of Housing and Urban Development (HUD) is considering a controversial overhaul of its housing assistance programs, according to Bisnow.

If enacted, these changes could significantly limit access to federal housing aid for millions of low-income households.

The draft rules, still unpublished, would allow local housing agencies to require adult household members to work up to 40 hours per week, cap housing aid to two years, and prohibit aid for families unless every member is a US citizen or has a verified path to citizenship.

The Potential Impact

ProPublica estimates that around 4M Americans could lose access to housing support if these rules move forward. This would deeply affect the more than 8M people currently relying on federal rental assistance, including public housing and vouchers.

Currently, most families receiving assistance earn less than $20,000 annually. The new policies, housing advocates say, would likely remove housing aid from the most vulnerable, those least able to meet the proposed requirements.

“These are rules that are going to cause an enormous amount of hardship for millions of people,” said Will Fischer, Director of Housing Policy at the Center on Budget and Policy Priorities.

Local Discretion, National Consequences

While not mandatory across the board, the proposed rules would give public housing authorities and private landlords wide discretion to enforce the changes. HUD reportedly expects 750 housing agencies and 3,500 landlords to adopt the new restrictions.

Some cities, including Atlanta, Chicago, and Philadelphia, have already piloted similar work mandates under HUD’s “Move to Work” program. If the draft rules are formalized, these policies could expand nationwide.

Mixed-Status Families at Risk

Another provision in the draft would end prorated housing aid for mixed-status families—households where not all members can prove US citizenship or legal immigration status. That change could disqualify approximately 20,000 families, particularly in immigrant-heavy states like California, Texas, and New York.

Currently, these families receive partial assistance based on the number of eligible citizens in the household.

Why It Matters

The draft proposals represent a significant shift in federal housing policy, signaling a move toward conditional aid based on work and immigration status. While HUD argues the rules would promote self-sufficiency and free up resources, critics argue they are a backdoor method to slash housing support.

“It’s disguised as work requirements and term limits, but in reality it’s a way to strip families of their benefits,” said Deborah Thrope, Deputy Director of the National Housing Law Project.

What’s Next?

The proposed rules are not yet public. Once released, they would enter a public comment period, a process that could take months or even years. In the meantime, housing advocates are mobilizing to challenge the changes, warning of the sweeping consequences they could have on housing stability nationwide.

As the debate unfolds, the fate of millions living on the edge of housing insecurity remains uncertain.