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Housing advocates worry states can't fill rental aid gaps if Trump cuts go through The Trump administration is pushing to reshape the federal housing safety net by slashing spending and shifting the burden of housing millions of people to states, which may be ill-equipped to handle the mission. President Donald Trump’s recent budget request to Congress for fiscal year 2026, a preliminary plan released in early May and known as “skinny” because a more robust ask will follow, outlines a 44% cut to the U.S. Department of Housing and Urban Development, including a 43% reduction in rental assistance programs that support more than 9 million Americans. Trump also wants to consolidate federal housing aid, which includes programs such as Housing Choice Vouchers and public housing, into block grants — or finite amounts of money that states would administer. The proposal also would cap eligibility for many aid recipients at two years, and significantly limit federal oversight over how states dole out housing aid to low-income, disabled and older renters. The approach tracks suggestions outlined in the Heritage Foundation playbook known as Project 2025, in which first-term Trump advisers and other conservatives detailed how a second Trump term might look. The chapter on HUD recommends limiting a person’s time on federal assistance and “devolving many HUD functions to states and localities.” To that end, Trump’s new housing aid budget request
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