Millions of low-income Americans could lose access to affordable housing under President Donald Trump’s proposed 2026 federal budget. The plan includes a $26.7 billion reduction to rental assistance programs—cutting current funding levels by 43%.
The cuts would affect Section 8 housing vouchers, public housing, and other key Department of Housing and Urban Development (HUD) programs that help more than 5 million households nationwide.
Section 8 and HUD face steep reductions
The proposal would significantly reduce funding for the Housing Choice Voucher program, commonly known as Section 8, which currently assists about 2.3 million households. Under the plan, able-bodied adults without disabilities would be limited to just two years of assistance—replacing the current indefinite, eligibility-based system.
HUD Secretary Scott Turner called the federal programs “bloated and bureaucratic” and said the budget aims to improve efficiency and shift control to the states.
States would take control under block grants
Trump’s plan would convert HUD’s rental assistance programs into block grants, allowing states to design their own systems. The administration claims this will give states flexibility to address local housing needs more effectively.
But housing advocates warn the move could lead to massive disparities between states and reduced protections for tenants.
“This shift will create a fragmented system where your zip code could determine whether you have access to stable housing,” said Diane Yentel, president of the National Low Income Housing Coalition.
Some states may maintain strong programs, while others could impose stricter rules or reduce benefits to cut costs.
California and Washington among hardest hit
In California, more than 560,000 households currently receive federal rental assistance. Local officials say the proposed cuts would severely impact both tenants and landlords, potentially reversing recent gains in reducing homelessness.
Matt Schwartz, CEO of the California Housing Partnership, warned that eliminating specific funding in favor of vague block grants could make programs more vulnerable to future cuts.
In Washington state, where rents have surged, housing advocates say thousands could become homeless if the cuts are enacted. Anne Martens of the King County Housing Authority said the combined impact of housing, healthcare, and social service cuts could push entire communities into poverty.
Political pushback from both sides
Democrats have widely condemned the plan. Washington Sen. Patty Murray said the cuts would “rip the roofs off Americans’ heads.” Some Republicans have also expressed concern, especially in districts that rely heavily on rental assistance.
Sonya Acosta of the Center on Budget and Policy Priorities said the proposal breaks Trump’s earlier promises to improve housing affordability.
“Millions of fewer people would receive assistance,” she said. “This is doing the opposite of making housing affordable.”
Still, the Trump administration argues the changes will reduce federal spending and promote self-sufficiency among working-age adults.
What happens next?
The president’s budget proposal is a blueprint—not law. Congress holds the power to draft and approve federal budgets. Lawmakers from both parties are expected to propose amendments.
During Trump’s first term, similar attempts to cut HUD programs were rejected by Congress. Housing advocates hope bipartisan support for rental assistance will hold firm again, but they say the risk remains.
Key takeaways:
- Trump’s 2026 budget proposes a $26.7B cut to rental assistance—down 43%.
- Section 8 and public housing would be converted to state-run block grants.
- New time limits would cap support for some adults at two years.
- Housing experts warn of rising homelessness and instability.
- Congress must approve the budget; significant changes are likely.
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