President Donald Trump’s proposed 2026 federal budget aims to cut rental assistance funding by 40%, a move critics warn could lead to a rise in homelessness.
The plan would eliminate HUD oversight of programs like Section 8, replacing them with smaller block grants to states to design their own rental aid programs.
States could add their own funds but aren’t required to.
The proposal also imposes a two-year cap on rental assistance for able-bodied adults, prioritizing support for elderly and disabled Americans.
Housing advocates express concern that many at-risk renters could lose vital aid, as nearly half of renters are already cost-burdened.
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