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Trump Administration Pushes Two-Year Cap on HUD Aid as Congress Omits Limits from 2026 Budget

A New York University study warns the rule could uproot 1.4 million working families, overwhelming housing agencies with eviction logistics.

Aaliyah and Aarmoni Barnes stand in the hallway near their apartment at the Stoddard Johnston Scholar House, Friday, July 11, 2025, in Louisville, Ky. (AP Photo/Jon Cherry)
Apartment buildings are seen at the Stoddard Johnston Scholar House, Friday, July 11, 2025, in Louisville, Ky. (AP Photo/Jon Cherry)
Havalah Hopkins, a single mother who lives in government-subsidized housing with her teenage son, goes to check on her son playing outside Thursday, July 10, 2025, in Woodinville, Wash. (AP Photo/Lindsey Wasson)
Aaliyah Barnes wipes her son, Aarmoni's, face with a blanket in their apartment at the Stoddard Johnston Scholar House, Friday, July 11, 2025, in Louisville, Ky. (AP Photo/Jon Cherry)

Overview

  • The administration’s proposal would restrict public housing and Section 8 vouchers to two years to reduce waste and promote self-sufficiency
  • NYU researchers estimate up to 1.4 million predominantly working families with children could lose subsidized housing under the cap
  • Housing authorities caution the policy would trigger mass evictions and incur substantial administrative costs to replace assisted households
  • The House appropriations committee’s fiscal 2026 budget draft contains no time-limit provisions, leaving the measure stalled in Congress
  • Previous local pilots saw 11 of 17 housing authorities end time-limit trials and none adopt a two-year ceiling