Memo to Members

President Trump Releases FY27 Budget Request Proposing Significant Cuts to HUD Programs, and Work Requirements and Time Limits on Assisted Households – Take Action!

Apr 06, 2026

By Kim Johnson, NLIHC Senior Director of Policy and Alayna Calabro, NLIHC Senior Policy Analyst   

President Donald Trump and HUD Secretary Scott Turner released on April 3 a fiscal year (FY) 2027 budget request calling for an overall 10 percent cut to non-defense programs, including a cut of at least $3.8 billion dollars to HUD’s vital affordable housing, homelessness, and community development programs. The White House requested $73.5 billion in funding for HUD in the coming fiscal year, a roughly five percent cut from the $77.3 billion for HUD programs Congress provided in the final FY26 budget. See NLIHC’s full analysis, and an updated budget chart for an overview of funding levels for select HUD programs.  

“Cuts to healthcare and food assistance, combined with the rising cost of gas, groceries, and other necessities, are already putting added strain on households struggling to make ends meet,” said NLIHC’s President and CEO, Renee M. Willis, in a statement after the budget’s release. “Further eroding the country’s safety net with cuts to housing assistance will leave even more families without the resources they need to live with stability and dignity.” 

While the FY27 budget request does not include the extreme changes and staggering cuts to rental assistance programs proposed in last year’s budget request, it includes severe cuts to many programs and policy proposals that would make it more difficult for families to find and maintain a stable, affordable home. The request includes language prohibiting Public Housing Agencies (PHAs) from issuing “any new vouchers or otherwise [assisting] new families,” including through Project-Based Vouchers (PBVs), “except vouchers for HUD-Veterans Affairs Supportive Housing (HUD-VASH) and the family unification program.” The request also includes significant changes to HUD’s Homeless Assistance Grant (HAG) program that, if enacted, would radically change the way communities can respond to the needs of people experiencing homelessness, shifting funding from permanent housing with supportive services, and towards less effective, more costly measures like short-term shelters and transitional housing.  

Despite bipartisan consensus that more must be done to boost the country’s affordable housing supply, the request would zero out funding for several programs that help finance the construction and preservation of affordable homes, including the HOME Investment Partnership program (HOME), the Community Development Block Grant (CDBG) program, and the Native Hawaiian Housing Block Grant program, among others. In addition, the proposal would impose work requirements and time limits on households receiving HUD rental assistance, and directs $30 million towards a new Program Integrity Initiative, dedicated to “[fighting] fraud, waste, and abuse of Federal housing programs.”  

Take Action: Tell Congress to Provide the Highest Possible Funding for Affordable Housing and Homelessness Programs in FY27!  

NLIHC is calling on Congress to once again reject funding cuts and harmful policy changes proposed in the White House’s budget request, and instead provide the highest possible funding for HUD’s affordable housing, homelessness, and community development programs, including for NLIHC’s top priorities:  

  • Full funding to renew all existing Housing Choice Voucher (HCV) contracts, including ensuring continued assistance for Emergency Housing Voucher holders. 

  • At least $5.1 billion for HUD’s Homeless Assistance Grants program to address the needs of people experiencing homelessness. 

  • Increased funding for public housing operations and capital needs, to help maintain and efficiently operate public housing. 

  • Increased investments in programs that support the construction and preservation of deeply affordable, accessible housing, including full funding for all Section 811 PRA and PRAC renewals, at least $424 million for new Section 811 PRA contracts, and full funding to renew all existing contracts under the Section 202 Housing for the Elderly program.  

  • At least $15 million for HUD’s Eviction Prevention Grant Program (EPGP), to provide communities grants to establish right to counsel and other programs that help people avoid eviction and remain housed.  

  • At least maintained funding of $1.1 billion for the Indian Housing Block Grant (IHBG) program, and increasing funding to $150 million for the IHBG-Competitive program.  

Advocates can take action today by: 

  • Emailing or calling members’ offices to tell them about the importance of affordable housing, homelessness, and community development resources to you, your family, your community, or your work. You can use NLIHC’s Take Action page to look up your member offices or call/send an email directly!    

  • Sharing stories of those directly impacted by homelessness and housing instability. Storytelling adds emotional weight to your message and can help lawmakers see how their policy decisions impact actual people. Learn about how to tell compelling stories with this resource.     

Visit NLIHC’s Advocacy Hub for more information and resources that can help you take action and help protect the affordable housing programs people rely on.