Controversial Policy Changes Unlikely to be Enacted This Year
Today, the Trump Administration released its proposed budget for FY 26, outlining plans for discretionary spending. PHADA is deeply concerned about the severe funding reductions in the proposed budget, which represents a cut of over $32 billion to HUD programs compared to the enacted FY 25 levels.
Among the most troubling elements are proposals to block grant core rental assistance programs—including Tenant-Based Rental Assistance (TBRA), Public Housing, Project-Based Rental Assistance (PBRA), Housing for the Elderly, and Housing for Persons with Disabilities. Additionally, the budget proposes eliminating key initiatives such as the Community Development Block Grants (CDBG), HOME, Pathways to Removing Obstacles to Housing (PRO), and the Fair Housing Initiatives Program (FHIP). It would also impose a major policy shift by introducing a two-year cap on rental assistance for able-bodied adults.
Although presidential budgets are generally considered policy “wish lists,” they do provide a clear indication of an Administration’s priorities. With controversial policies and just 5 months until the new fiscal year begins, the proposal is highly unlikely to be enacted. However, the messaging remains extremely concerning given the Administration’s influence over the Republican-controlled House and Senate.
PHADA strongly opposes these cuts and the effort to block-grant rental assistance. The Association is actively engaged with congressional leaders to ensure adequate funding for HUD programs and oppose policy changes that would negatively impact our members in addition to the communities and residents they serve.
An in-depth analysis will be provided in the upcoming edition of the Advocate.