Trump Proposes 44% Cut to HUD Budget, Reshapes Housing Aid

President Donald Trump unveiled a sweeping budget plan Friday that would reduce the Department of Housing and Urban Development’s funding by 44% and overhaul how federal rental assistance is administered. 

The move marks a major effort by the administration to reshape the nation’s affordable housing programs, reports Bisnow.

A New Vision

The proposed budget slashes HUD’s funding from $77B to $43.5B, cutting roughly $26.7B from rental assistance programs alone. Trump’s plan would transition federal programs like Section 8 housing vouchers to state-administered grants, aiming to allow states more flexibility while encouraging private sector involvement in affordable housing development.

The budget also proposes capping rental assistance for able-bodied adults at two years, with the goal of prioritizing elderly and disabled beneficiaries.

Major Program Eliminations

Among the most controversial aspects of the budget is the complete elimination of the Community Development Block Grant program, which Trump officials criticized for funding local projects like brewery improvements and skate parks. Additionally, the HOME Investment Partnerships Program — a major funding source for expanding low-income housing — would also be eradicated.

HUD Secretary Scott Turner praised the budget for reducing federal “bloat” and giving states and cities more responsibility, while emphasizing the plan’s focus on streamlining and consolidating programs.

Widespread Opposition

Affordable housing advocates responded swiftly and critically. The National Association of Housing and Redevelopment Officials warned the plan would devastate millions of families, while nonprofits like New York’s Association for Neighborhood and Housing Development called the cuts “dangerous.”

Rachel Fee, executive director of the New York Housing Conference, labeled the proposal “inhumane,” saying it would worsen homelessness, particularly in high-cost areas like New York City.

Why It Matters

If enacted, Trump’s budget would dramatically reshape the federal role in affordable housing, increasing reliance on state and local governments while reducing overall federal investment. Although similar proposals in Trump’s first term failed to pass Congress, the aggressive scope of the new plan signals a persistent focus on minimizing federal housing support.

What’s Next

The proposed budget faces strong resistance from Democrats and affordable housing advocates, suggesting a difficult path ahead in Congress. As housing affordability remains a top concern nationwide, expect this debate to continue dominating discussions around national housing policy in 2025.