Bipartisan Concerns Raised Over Proposed Elimination of HOME and CDBG Programs
On May 12 and May 14, HUD Secretary Scott Turner testified before the House and Senate Appropriations Subcommittees on Transportation, Housing and Urban Development, and Related Agencies (T-HUD) on the Administration’s proposed FY 27 budget request. Across both hearings, lawmakers examined the Administration’s proposed reductions or elimination of various HUD programs, questioned the Department’s priorities, and raised concerns regarding housing affordability, homelessness, and staffing capacity for program administration.
Article Summary
- HUD Secretary Scott Turner testified before both the House and Senate T-HUD Appropriations Subcommittees on the Administration’s proposed FY 27 HUD budget.
- Lawmakers from both parties raised concerns on the proposed elimination of HOME, CDBG, and self- sufficiency programs, many noting their longstanding bipartisan support.
- Republicans focused on regulatory reform, reducing barriers to housing development, and concerns with HUD’s implementation of Build America, Buy America (BABA) requirements.
- Democrats questioned HUD’s staffing capacity, fair housing enforcement, Continuum of Care (CoC) implementation delays, and the impact proposed cuts could have on low-income families.
- Throughout both hearings, lawmakers repeatedly pressed HUD for more detailed plans regarding how the Department would administer programs and achieve housing goals under the proposed funding levels, with the Secretary providing few details.
Republican members largely focused on oversight, regulatory reform, and ways to speed housing development. However, lawmakers in both parties raised concerns about the proposed elimination of long-supported bipartisan programs, including the HOME Investment Partnerships Program (HOME), Community Development Block Grants (CDBG), and resident self-sufficiency initiatives. Secretary Turner was repeatedly pressed to explain how HUD would address rising housing needs amid deep proposed funding cuts and ongoing operational challenges.
Republican Appropriators Voice Bicameral Concerns Over HUD Program Eliminations
In opening remarks before the Senate T-HUD Subcommittee, Chair Cindy Hyde-Smith (R-MS) acknowledged the difficult fiscal environment facing appropriators and the competing funding pressures on the HUD budget, created by the expiration of the $37 billion provided through the 2021 Infrastructure Investment and Jobs Act (IIJA) for transportation programs. While agreeing with the need for budget discipline, Hyde-Smith also expre ssed concern about the proposed elimination of several HUD programs that traditionally receive bipartisan support, including HOME, CDBG, Section 4 capacity building grants, the Self-Help Homeownership Opportunity Program (SHOP), and resident self-sufficiency programs such as Resident Opportunity and Self-Sufficiency (ROSS) and Family Self-Sufficiency (FSS).
Similarly, House T-HUD Subcommittee Chair Steve Womack (R-AR) noted that Congress may ultimately differ with the Administration’s request to eliminate HOME, CDBG, and self-sufficiency programs, reflecting the continued bipartisan support for these initiatives.
Several Republican appropriators also raised concerns about proposed cuts and program implementation challenges. Senator Shelley Moore Capito (R-WV) defended the effectiveness of CDBG in rural communities and cautioned against eliminating the program entirely.
Senate Appropriations Committee Chair Susan Collins (R-ME) highlighted the challenges affordable housing developers in Maine are facing under HUD’s implementation of BABA requirements, describing the waiver process as a “black hole where affordable housing dies.” Collins emphasized that project-by-project waivers create financing uncertainty and development delays, particularly when certain construction products are not manufactured domestically. In the House hearing, Full Committee Chair Tom Cole (R-OK) strongly objected to proposed reductions in Tribal housing programs and warned that Congress would not sustain those cuts on a bipartisan basis.
Throughout both hearings, common themes from Republican lawmakers also included a focus on deregulation and housing supply issues. Legislators encouraged HUD to streamline environmental reviews, improve FHA processing timelines, provide additional flexibility for HAs, and revisit BABA implementation policies.
Democrats Press HUD on Staffing, Fair Housing, and Homelessness Programs
Democratic lawmakers focused heavily on the potential impact the proposed budget reductions could have on housing affordability, homelessness, and HUD’s administrative capacity.
In a contentious exchange with Secretary Turner, Senate T-HUD Ranking Member Kirsten Gillibrand (D-NY) argued that the proposed budget would worsen the affordable housing crisis by eliminating key housing and community development programs while failing to provide sufficient resources to meet existing needs. She also raised concerns about staffing reductions at HUD and delays in homelessness data reporting.
House and Senate Democrats repeatedly challenged Turner on HUD’s implementation of Continuum of Care (CoC) programs and questioned delays in grant awards. Senate Appropriations Committee Vice Chair Patty Murray (D-WA) argued that HUD is legally required to administer appropriated CoC funding and warned that local providers face growing uncertainty because of delayed awards and shifting policy direction.
Members including Ranking Member of the House Appropriations Committee, Rosa DeLauro (D-CT), and Reps. Grace Meng (D-NY) and Robert Garcia (D-CA) questioned Turner’s criticism of the Housing First model, noting that permanent supportive housing programs often include extensive supportive services in addition to housing assistance.
Democrats also raised concerns about HUD’s approach to fair housing enforcement, proposed changes affecting mixed-status families, and reductions in Housing Opportunities for Persons with AIDS (HOPWA) funding. Several argued that staffing reductions and policy changes threaten to undermine the Department’s ability to fulfill its statutory responsibilities.
Turner Defends Budget Priorities and Oversight Agenda
In his testimony, Secretary Turner framed the Administration’s budget proposal as part of a broader effort to refocus HUD on “core mission” activities, increase internal accountability, and reduce regulatory barriers that he argued constrain housing production.
Throughout both hearings, Secretary Turner frequently attributed current operational challenges to policies and conditions inherited from the Biden Administration, leading to several tense exchanges with Democratic members who repeatedly pressed for more specific answers regarding HUD’s current plans and measurable outcomes.
Lawmakers in both parties raised concerns about the proposed elimination of long-supported bipartisan programs, including the HOME Investment Partnerships Program (HOME), Community Development Block Grants (CDBG), and resident self-sufficiency initiatives.
Turner defended the proposed elimination of CDBG, stating that the program has “lost purpose,” while also reaffirming the Administration’s support for work requirements and five-year term limits for housing assistance. He repeatedly criticized the “Housing First” model used in homelessness programs.
The Secretary highlighted funding requested for the Foster Youth to Independence voucher program, referred to during the hearings as the Melania Trump Foster Youth to Independence initiative, and defended the Department’s decision to relocate from the Weaver Building as responsible stewardship of taxpayer resources.
When questioned on oversight and administrative reforms, Turner frequently emphasized efforts to combat “waste, fraud, and abuse,” citing new grant management initiatives and stronger internal controls. Lawmakers from both parties repeatedly sought additional operational details regarding implementation, though few specifics were provided.
PHADA will continue to advocate for full funding throughout the appropriations process and will keep members informed of FY 27 budget developments through the Advocate, eBlasts, and social media updates.