Trump Seeks $163 Billion in Spending Cuts - $43.5 Billion for HUD

President Trump has proposed a budget that would cut non-defense discretionary spending by $163 billion for fiscal year 2026, which runs from Oct. 1, 2025, through Sept. 30, 2026. The spending reductions include a $43.5 billion cut — about 44% — for the U.S. Department of Housing and Urban Development (HUD).

It is important to note that no White House budget is ever approved “as is” by Congress. The annual appropriations process determines the levels of federal spending for each of the federal departments and agencies, and all programs within their respective jurisdictions.

Although the president’s budget recommends spending levels for the next fiscal year, it is not legally binding. Congressional appropriators have the final say in program realignment and spending levels.

The president’s proposed budget changes (see pages 25-26 for HUD items) include:

• Reducing more than $26 billion for a range of rental assistance programs (including Project-Based Rental Assistance, Housing Choice Vouchers, public housing and other programs), with the aim to allow states to design their own plans. The budget proposes to institute a two-year cap on rental assistance for able-bodied adults, among other changes.
• Eliminating funding for the Community Development Block Grant program.
• Eliminating the Home Investments Partnerships Program.

Although the cuts are unlikely to be enacted, NAHB will continue to monitor the appropriations process as funding decisions are made on key housing, tax, labor and environmental programs.