By Alayna Calabro, NLIHC Senior Policy Analyst and San Kwon, NLIHC Policy Intern
The House Appropriations Subcommittee for Transportation and Housing and Urban Development (THUD) held a hearing on June 10 to discuss the President’s HUD budget request for fiscal year 2026 (FY26). HUD Secretary Scott Turner answered questions from subcommittee members about the President’s budget request and the proposed dramatic cuts to HUD funding and programs.
In his opening statement, Secretary Turner described a new “playbook” and “paradigm shift” to enable HUD to get rid of alleged “fraud, waste, and abuse” within its programs. He further stated that HUD assistance should be temporary, not permanent.
Subcommittee members from both parties expressed concerns about the lack of specific plans for filling gaps created by the proposal’s drastic program cuts, particularly those that will impact the lowest-income and most marginalized populations.
While Chair Steve Womack (R-AR) acknowledged that HUD is imperfect and could be more efficient, he cautioned that the cuts proposed in the president’s budget request may be too deep and too rushed. He also expressed concerns about cuts to rental assistance programs, especially given the high housing costs in his state of Arkansas. Chair Womack shared his concerns that the proposed State Rental Assistance Block Grant Program could create gaps that would increase housing instability and homelessness.
Ranking Member Jim Clyburn (D-SC) stated that the proposed cuts are “not only unacceptable but unrealistic given a dire need to lower the cost of living for Americans.” He emphasized that the cuts will only increase the burdens on low-income households. Ranking Member Clyburn stressed that the budget proposal “ignores far too many realities” and expressed concern that the request provides no replacements for eliminated programs.
Representative Norma Torres (D-CA) called attention to the proposed funding cuts for disaster recovery, including Community Development Block Grant Disaster Recovery (CDBG-DR) funds. Representative Torres noted that California has still not received any disaster recovery funding for the Los Angeles wildfires that occurred earlier this year. Upon being asked whether he believes local governments can effectively finance disaster recovery without HUD support, Secretary Turner responded that states like California should not receive funds if they cannot fix their “stewardship” and “management” issues.
Representative Adriano Espaillat (D-NY) shared concerns that the proposed budget cuts would exacerbate the country’s dire housing affordability and homelessness crisis. He further explained how budget cuts may affect New York City, where 570,000 people live in housing operated by the New York City Housing Authority, an agency that relies heavily on HUD funding and has a significant capital needs deficit. He condemned the budget proposal, referring to it as a “personal foul on the American people.”
Watch the full hearing at: https://tinyurl.com/2dvt6ecc
Read NLIHC’s analysis of the President’s budget request at: https://bit.ly/4kDwWeH
View NLIHC’s updated budget chart at: https://bit.ly/45RQ0Bl