President Donald Trump’s administration released a budget plan on Friday that proposed drastic cuts across the federal government, including slashing the Department of Housing and Urban Development’s discretionary funding by more than 40%.
The budget referred to the federal government’s current rental assistance program as “dysfunctional.” NPR reported that it essentially called to end the Housing Choice Voucher Program, also known as Section 8, noting that it would slash rental aid by roughly 40%.
‘It furthers our mission-minded approach at HUD of taking inventory of our programs and processes to address the size and scope of the federal government, which has become too bloated and bureaucratic to efficiently function.’
According to the administration’s budget plan, the proposal aims to empower states to provide housing assistance “by transforming the current federal dysfunctional rental assistance programs into a state-based formula grant which would allow states to design their own rental assistance programs based on their unique needs and preferences.”
If adopted, the budget would place a two-year cap on rental assistance for able-bodied adults. It would also ensure that “a majority” of the funding went toward the elderly and disabled.
“A state-based formula program would also lead to significant terminations of federal regulations,” the budget continued. “In combination with efforts related to opening up federal lands, this model would incentivize states and the private sector to provide affordable housing.”
Additionally, the budget would earmark $25 million in housing grants for individuals aging out of the foster care system.
HUD Secretary Scott Turner released a statement responding to Trump’s proposed budget, calling it a “bold … reimagining of how the federal government addresses affordable housing and community development.”
“It rightfully provides states and localities greater flexibility while thoughtfully consolidating, streamlining, and simplifying existing programs to serve the American people at the highest standard,” Turner said. “It creates the opportunity for greater partnership and collaboration across levels of government by requiring states and localities to have skin in the game and carefully consider how their policies hinder or advance goals of self-sufficiency and economic prosperity.”
He added, “Importantly, it furthers our mission-minded approach at HUD of taking inventory of our programs and processes to address the size and scope of the federal government, which has become too bloated and bureaucratic to efficiently function.”
Critics of the plan have argued that it would lead to a spike in homelessness.
Kim Johnson, policy manager with the National Low Income Housing Coalition, told NPR, “We would see, I think, homelessness escalate in a way that has been really unprecedented and unheard of.”
NLIHC argued that the budget would “decimate HUD’s vital affordable housing, homelessness, and community development funding.”
“In total, the ‘skinny’ request foreshadows a full request that will aim to slash HUD spending by 44% from FY25, including a proposal that would result in an unprecedented 43% cut to HUD’s rental assistance programs,” the nonprofit stated.
NLIHC noted that 200,000 households currently depend on the HCV program.
Others supported Trump’s move to reduce Section 8 funding significantly.
Conservative commentator Ann Coulter wrote in a post on social media, “Section 8 housing is a scam for slumlords to charge the government exorbitant rents on behalf of non-paying welfare recipients. Can’t imagine anyone OTHER THAN a slumlord defending it.”
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