Overview

• President Trump's FY2026 budget proposes cutting $26.7 billion from federal housing assistance programs, including Section 8 vouchers.
• The plan reallocates remaining funds into state-managed block grants, allowing states to design their own rental assistance programs.
• Experts warn the cuts could impact 3.8 million low-income, elderly, and disabled tenants, exacerbating the nation’s housing crisis and homelessness surge.
• A new two-year cap on rental assistance for able-bodied adults is included, prioritizing aid for elderly and disabled populations.
• The proposal faces significant opposition from housing advocates, state officials, and some lawmakers as Congress prepares to debate its implementation.