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‘Millions out on the street virtually overnight’: How Trump’s budget proposal could affect California

May 5, 2025

On Friday President Trump released a budget blueprint for the next fiscal year that would take a chainsaw to social, environmental and education programs. Some of the sharpest cuts are directed at housing programs that are meant to serve the poor, housing insecure and unhoused.

In California, millions are served by these funds and state and local governments depend on them to operate affordable housing, rental assistance, homeless service, planning and legal programs.

In a letter to the U.S. Senate Appropriations Committee, the president’s budget director, Russel Vought, laid out $163 billion in annual spending cuts coupled with “unprecedented increases” in military and border security spending. The cuts, Vought wrote, are directed at areas of spending that the administration found to be “contrary to the needs of ordinary working Americans and tilted toward funding niche non-governmental organizations and institutions of higher education committed to radical gender and climate ideologies antithetical to the American way of life.”

That includes $33.5 billion in proposed cuts to the Housing and Urban Development department, a 44% reduction from current levels.

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