Overview

• The proposed 2026 federal budget includes a $26.7 billion reduction in housing assistance programs like Section 8, representing a 43% cut.
• Remaining federal housing funds would be consolidated into a State Rental Assistance Block Grant, giving states control over program design.
• A two-year cap on rental aid for able-bodied adults is proposed, prioritizing funding for elderly and disabled households.
• Experts warn the cuts could destabilize housing for 3.8 million people, exacerbate homelessness, and burden state and local governments.
• Congress will decide whether to approve, modify, or reject the proposed cuts, while states assess their capacity to address funding gaps.