Overview

• The proposed budget slashes $33.5 billion from HUD, including $26.7 billion from rental assistance programs like Section 8, and consolidates funding into state-administered block grants.
• A two-year cap on rental assistance for able-bodied adults is included, prioritizing aid for elderly and disabled individuals but drawing criticism for potentially exacerbating housing insecurity.
• The plan would end the Continuum of Care homelessness program, replacing it with a short-term Emergency Solutions Grant, shifting focus away from permanent housing solutions.
• Advocates warn the cuts could displace millions, increase homelessness, destabilize housing markets, and strain state and local budgets unable to fill funding gaps.
• Congressional approval is uncertain, with narrow Republican majorities and unified Democratic opposition, while housing groups prepare to lobby against the proposal.