Trump Seeks Nearly $11 Billion Cut to HUD Programs

President Trump has proposed a budget that would cut non-defense discretionary spending by $73 billion for fiscal year 2027, which runs from Oct. 1, 2026, through Sept. 30, 2027. The spending reductions include a $10.7 billion cut — about 13% — 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 29-32 for HUD items) include:

• Eliminating funding for the Community Development Block Grant program.
• Eliminating the Home Investments Partnerships Program.
• Eliminating the Fair Housing Initiatives Program under the Fair Housing Act.
• Eliminating programs deemed to fall under the executive orders “Ending Radical and Wasteful Government Diversity, Equity and Inclusion (DEI) Programs and Preferencing” and “Ending Crime and Disorder on America’s Streets,” including homeless assistance programs, housing counseling, Pathways to Removing Obstacles (PRO) Housing, and Housing Opportunities for Persons with AIDS (HOPWA).

The budget also seeks funding for the following rental assistance programs:

• $38.8 billion for the Housing Choice Voucher (HCV) Program, which includes $35.6 billion for HCV contract renewals requests; and
• $17.6 billion for Project-Based Rental Assistance (PBRA), which includes $16.9 billion for project-based Section 8 contract renewals and $529 million for performance-based contract administrators.

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.