- Trump’s proposed budget includes a $26B cut to rental assistance, targeting Section 8 programs.
- About 5,700 Long Island households could lose housing support, with local reliance on vouchers exceeding 33K residents.
- The plan caps vouchers at two years for able-bodied adults, well below the regional average of 11.5 years.
- New York is launching a $50M pilot for state-funded vouchers to offset potential federal losses.
A Critical Dependency
Long Island’s housing market is heavily dependent on federal rental assistance programs, reports The Real Deal. Across Nassau and Suffolk counties, more than 33K residents use Section 8 vouchers to afford housing. Unlike many urban areas with large public housing complexes, Long Island relies largely on scattered-site housing with rental subsidies—making it particularly vulnerable to federal funding cuts.
The proposed two-year cap on vouchers for working-age, able-bodied adults contrasts sharply with current trends. Voucher recipients on Long Island stay in assisted housing for an average of 11.5 years, reflecting the region’s high housing costs and limited rental inventory.
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Deep Local Impact
If enacted, the budget would cut HUD’s funding by over 40% in FY 2026—from $77B to $43.5B—and reduce rental assistance by $26B. The cap on voucher duration could leave thousands unable to afford market-rate housing, particularly in high-cost areas like Long Island.
Local housing operators warn of the fallout. A landlord in Patchogue operating subsidized units stated that tenants without vouchers would be priced out immediately. Most assisted households earn under $57,500 annually and pay just 30% of their income toward rent—the rest covered by federal assistance.
State Response
New York lawmakers have criticized the federal proposal, arguing it overlooks regional housing realities. In anticipation of potential cuts, the state included a $50M pilot program in its budget to test state-funded rental assistance—a move intended to buffer residents against federal retrenchment.
Still, experts say state funding is unlikely to fully offset the potential loss of federal support, especially in markets as tight and costly as Long Island’s.
What’s Next
The proposed budget marks a fundamental shift in federal housing policy—from direct assistance to block grants administered by states. While federal officials argue this could improve efficiency, housing advocates caution that the most vulnerable residents risk falling through the cracks.
With Congress set to debate the federal budget later this year, the future of Long Island’s Section 8 recipients—and thousands more across the country—hangs in the balance.