Trump's 2026 Budget Proposal: $26.7 Billion Cut to HUD Threatens Housing Vouchers for 2 Million Low-Income Households

President Donald Trump's proposed 2026 federal budget plans to cut $26.7 billion, or 43%, from rental aid programs managed by the Department of Housing and Urban Development (HUD). This would affect over 2 million low-income households, including seniors, veterans, and people with disabilities. The proposal suggests replacing the current voucher system with state-run block grants and imposing a two-year limit on rental assistance for able-bodied adults. The plan has faced criticism from both parties, with concerns about its impact on vulnerable populations and the broader housing crisis.

A Lifeline at Risk

For Richard Hale, a 64-year-old Air Force veteran and amputee living in Maine, a housing voucher was the difference between stability and homelessness. After losing his leg and being forced to leave a shared mobile home due to occupancy restrictions, Hale was approved for a HUD-Veterans Affairs Supportive Housing (HUD-VASH) voucher in March. By April, he had moved into an accessible, affordable unit in a 55+ community.

Hale is one of approximately 2.3 million U.S. households currently using housing vouchers to afford rent. These vouchers typically require tenants to pay about 30% of their income toward rent, with HUD covering the remainder up to a fair market rate. For Hale, whose only income is a $1,675 monthly Social Security disability check, the voucher allows him to pay $493 in rent and retain just over $1,000 for other expenses.

But under Trump’s proposed budget, the future of this support is uncertain.

The Budget Proposal: Deep Cuts and Structural Changes

The 2026 budget proposal calls for a 44% reduction in HUD funding, including a $26.7 billion cut to rental assistance programs such as Section 8 housing vouchers, public housing, and aid for the elderly and disabled. The plan would consolidate these programs into block grants administered by states, giving them more discretion but less federal oversight.

One of the most controversial elements of the proposal is the imposition of a two-year cap on rental assistance for able-bodied adults without disabilities. Currently, eligibility for housing vouchers is based on income and need, not time limits.

Russell Vought, Trump’s director of the Office of Management and Budget, has previously advocated for eliminating housing vouchers altogether, claiming they lead to “crime, decreased property values, and subsidized irresponsibility.”

Populations Most Affected

The proposed cuts would disproportionately affect vulnerable populations, including seniors, veterans, and people with disabilities. According to the Center on Budget and Policy Priorities, only one in four eligible households currently receives a voucher due to limited funding. A recent Zillow report found that nearly 17 million U.S. households are severely rent-burdened—spending more than half their income on housing—yet do not receive assistance.

Many of those who do receive vouchers are older adults living on fixed incomes. Robin Spear, 62, lives in public housing in Oklahoma City after experiencing homelessness. While grateful for shelter, she describes unsafe conditions and deferred maintenance in her building. Her daughter refuses to let her grandchildren visit due to the environment.

Tracey Lee, 67, from Long Beach, California, had to stop working due to kidney failure and now relies on Social Security. After her rent increased repeatedly, she was approved for a subsidized senior apartment, but must wait six months to move in. In the meantime, she is searching for remote work to make ends meet.

Political and Administrative Responses

The proposal has drawn criticism from both Democratic and Republican lawmakers. Senator Patty Murray (D-WA) condemned the cuts, saying they would “rip the roofs off Americans’ heads.” Some Republicans have also expressed concern, particularly those representing districts with high reliance on federal rental assistance.

Despite the backlash, HUD Secretary Scott Turner praised the budget, calling federal housing programs “bloated and bureaucratic.” He emphasized a goal of moving people toward “self-sustainability,” while continuing to support those in genuine need.

HUD spokesperson Kasey Lovett echoed this sentiment, stating that the department aims to reduce long-term dependency on subsidies.

A History of Rejected Cuts

This is not the first time Trump has proposed deep cuts to HUD. During his first term, similar efforts were blocked by Congress. Housing advocates are hopeful that bipartisan support for rental assistance will again prevent the proposed reductions from becoming law.

However, the scale and structure of the 2026 proposal are more aggressive than previous attempts. By converting federal programs into block grants and capping assistance durations, the plan represents a fundamental shift in how housing aid is delivered.

Veterans and the Mixed Messaging

While the budget proposes cuts to housing assistance, including programs that benefit veterans, Trump has also signed executive orders aimed at expanding veteran housing. One such order directs the Department of Veterans Affairs to house 6,000 veterans on the West L.A. VA campus by 2028, up from the current commitment of 1,200 units by 2030.

Yet, other actions by the administration have undermined support for veterans. Earlier this year, the VA Servicing Purchase program—an affordable home lending option for struggling veterans—was eliminated, affecting at least 17,000 households. Additionally, staffing cuts at the Social Security Administration and Veterans Affairs have led to longer wait times and reduced services.

The Broader Housing Crisis

The proposed cuts come amid a national housing affordability crisis. In California alone, more than 560,000 households rely on some form of federal rental assistance. The average wait time for a voucher is two and a half years, and many recipients struggle to find landlords willing to accept them due to administrative burdens and stigma.

Despite these challenges, housing vouchers remain one of the most effective tools for preventing homelessness and promoting stability. They allow recipients to choose where they live, often enabling access to better schools, jobs, and healthcare.

For people like Richard Hale, the voucher system is not just a subsidy—it’s a lifeline.

Trump's 2026 Budget Proposal: $26.7 Billion Cut to HUD Threatens Housing Vouchers for 2 Million Low-Income Households

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