President Donald Trump’s proposed 2025 budget includes major cuts to the U.S. Department of Housing and Urban Development (HUD), sparking alarm among housing advocates and local governments. The plan would reduce overall HUD funding by more than 15%, including cuts to rental assistance, housing development, and homelessness programs.
Section 8 and public housing face reductions
The most significant changes would hit the Housing Choice Voucher (Section 8) and Public Housing programs. The budget would cut funding for Section 8 renewals by billions, potentially shrinking the number of vouchers available to low-income renters. Public Housing Capital Fund support—used for repairs and maintenance—would also see reductions, leaving many housing authorities scrambling to cover costs.
Housing development programs could slow
The HOME Investment Partnerships Program and the Community Development Block Grant (CDBG) program are on the chopping block again. Trump’s previous budgets proposed eliminating these programs entirely, and this year’s proposal moves closer to that goal. These funds support local affordable housing development, down payment assistance, and neighborhood revitalization. Cities rely heavily on these programs to support new construction and repair aging housing stock.
Supporters say cuts are needed to curb federal spending
Republican lawmakers backing the budget argue that the federal government must reduce spending and shift more responsibility to states. They claim programs like Section 8 have grown too large and should be reformed to increase efficiency. Trump’s team also frames the cuts as part of a broader push for “government efficiency” under the Department of Government Efficiency (DOGE), which continues to push cost-cutting initiatives across federal agencies.
Critics warn of a housing crisis
Housing advocates say the proposed cuts would have devastating consequences. Millions of low-income renters could lose access to assistance, and affordable housing production would slow to a crawl. Nonprofit developers warn that without HUD support, many planned housing projects will be delayed or canceled. Cities already struggling with homelessness and high rents may see conditions worsen.
What comes next in Congress
On May 16, the budget proposal hit a major roadblock in the House Budget Committee. Five conservative Republicans—Reps. Chip Roy, Ralph Norman, Josh Brecheen, Andrew Clyde, and Lloyd Smucker—joined all Democrats to vote it down 16–21, citing concerns over delayed energy reforms and insufficient Medicaid cuts. Their defection means Speaker Mike Johnson cannot advance the “One Big, Beautiful Bill” without addressing internal demands.
Party leaders now face intense weekend negotiations to win back support or revise the proposal. The committee’s chairman said there’s no quick fix, and a new vote may not happen until after Memorial Day. Meanwhile, former President Trump lashed out at the holdouts on Truth Social, calling them “GRANDSTANDERS.”
With a slim GOP majority, leadership can only afford to lose three votes on reconciliation. That puts key policies—including HUD’s funding—at the center of high-stakes talks. Renters and housing advocates should monitor developments closely. Delays or further cuts could disrupt affordable housing programs through the rest of 2025.
Bottom line: Uncertainty looms over housing aid
Trump’s 2025 budget proposal marks a significant shift in federal housing policy. If Congress approves these cuts, the impact will ripple through cities, suburbs, and rural communities. Renters, local housing authorities, and developers should watch closely as the budget moves forward—and prepare for big changes ahead.
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