The Trump administration is seeking to eliminate Section 8, the federal program that provides housing vouchers to assist low-income households. The White House is also looking to enact major cuts to other housing assistance and to transfer much of the authority of housing support to the states, even as experts warn of negative impacts to individuals and a worsening of the housing crisis as a result of these proposals.
White House proposes major cuts to housing assistance programs
NPR first reported that the Trump administration had sent a proposal to the Department of Housing and Urban Development to make major cuts to the federal government’s housing assistance programs. The cuts would essentially eliminate Section 8 and other voucher programs and cut the amount of federal spending on rental aid by about 40%. Additionally, the federal government would convert the remaining aid to block grants that would be given to states, leaving it up to state governments “to design their own rental assistance programs based on their unique needs and preferences.”
While the budget proposal would grant $25 million to provide assistance to individuals aging out of the foster care system, it would also limit eligibility for rental aid to two years for all able-bodied adults, thereby shifting a larger percentage of aid to elderly recipients and those with disabilities. Overall, the proposed changes would make even less aid available than the current system, which only provides assistance to about one in four eligible people. The budget also cuts federal aid to address homelessness by 12%. These cuts would coincide with the expected end of a Biden-era program that provided emergency housing vouchers to those at risk of homelessness or domestic violence; that program is expected to run out of money by 2026.
Trump administration touts cuts while experts warn of consequences
The proposed rental aid cuts are part of a larger package of $163 billion in federal spending cuts proposed by the Trump administration. While these changes are only proposals that can be rejected or altered by Congress, they signal the administration’s priorities in the midst of other major budget and spending cuts. The Office of Management and Budget released a statement that these new policies will “fix our broken federal housing policy and ensure that assistance goes to those who need it most.” The current system provides housing assistance to roughly 10 million people, including 2 million who receive Section 8 assistance.
Experts warn that the proposed budget would exacerbate the homelessness crisis persisting across the country. Eric Oberdorfer, director of policy and legislative affairs at the National Association of Housing and Redevelopment Officials, said that “devastating cuts like those proposed in the budget [for] public housing or to Section 8 would directly hurt families, communities and local economies,” according to The Washington Post. He estimated that 3.8 million people would be affected by the budget changes. Will Fischer, senior fellow and director of housing policy at the Center on Budget and Policy Priorities, meanwhile, pointed to the two-year cap on assistance as leaving many people vulnerable. “There are going to be lots of folks who continue to need help to pay the rent, and if this policy arbitrarily cuts off their assistance after two years, a lot of those people will not be able to pay the rent,” Fischer said, per The Washington Post. Without continued assistance, Fischer warned, “They’ll fall behind, they’ll be at risk of eviction.”
Overall, then, millions of people could find it harder to pay for and maintain housing if the Trump administration’s cuts go through. The administration’s proposed cuts might be altered or rejected during the budget process, but it is clear that the White House wants to see major changes, including significant budget cuts, in the ways that the federal government fights homelessness and unaffordable housing.