May 21, 2025
President Donald Trump’s fiscal year 2026 budget proposal would dramatically reshape federal housing policy. The proposal would cut nearly $33 billion from the Department of Housing and Urban Development (HUD) and effectively ending the Section 8 housing voucher program.
The budget blueprint includes a $26.7 billion reduction in federal rental aid—about 40% of HUD’s current budget. Instead of federally managed programs like Section 8, it proposes state-level grant systems with minimal oversight, leaving low-income families, older people, and disabled tenants vulnerable.