By Alayna Calabro, NLIHC Senior Policy Analyst and San Kwon, NLIHC Policy Intern
The Senate Appropriations Subcommittee for Transportation and Housing and Urban Development (THUD) held a hearing on June 11 to discuss the President’s HUD budget request for fiscal year (FY) 2026. HUD Secretary Scott Turner answered questions regarding the President’s budget request and its proposed dramatic cuts to critical housing and homelessness programs.
In his opening statement, Secretary Turner defended the budget proposal’s historic cuts to HUD programs. He claimed that HUD’s rental assistance programs were full of “waste, fraud, and abuse” and argued that HUD must strive to be “efficient and effective, not bloated and bureaucratic.” He emphasized the need for “localized solutions” to justify the president’s proposal to eliminate key federal housing and homelessness programs.
In her opening statement, Chair Cindy Hyde-Smith (R-MI) expressed disappointment about the proposed cuts and declared that the proposal lacked a “clear vision” for what comes next. She outlined concerns about the president’s proposal to consolidate HUD’s rental assistance programs—Housing Choice Voucher (HCV), Public Housing, Project-Based Rental Assistance, Section 811 Housing for People with Disabilities, and Section 202 Housing for the Elderly programs—into one State Rental Assistance Block Grant Program. The proposal, she stated, would leave decisions about how HUD funding is to be spent entirely up to states’ discretion, which would “risk undermining HUD’s existence.” Chair Hyde-Smith also expressed concerns about cuts to other critical programs such as the HOME Investment Partnerships Program (HOME) and Community Development Block Grant (CDBG) Programs, both of which support local housing development.
In her opening statement, Ranking Member Kirsten Gillibrand (D-NY) emphasized the need to lower housing costs and increase housing supply to address the country’s housing crisis. She expressed concerns that the budget, instead of addressing such needs, would only make matters worse, especially for those experiencing or at risk of homelessness. In contrast, Secretary Turner’s opening statement focused more on the challenges Americans face in achieving homeownership, which he blamed on the Biden Administration, rather than the worsening affordable housing and homelessness crisis impacting the nation’s lowest-income families, seniors, people with disabilities, veterans, and other people.
Several subcommittee members raised additional concerns about the president’s budget request. Senator Chris Coons (D-DE) stated that cutting funds and shifting the burden to the local level will not solve the housing crisis and questioned whether local authorities have the ability or capacity to pick up needed programs and assistance. Secretary Turner argued that HUD needs to adopt a new tactic, claiming that the current approaches are ineffective.
Vice Chair Patty Murray (D-WA) expressed concern that HUD’s actions so far under the Trump Administration run counter to the Department’s goal of helping “Americans keep a roof over their heads.” She explained, for instance, that the federal government’s withholding of critical funding is causing a crisis among care and support providers in Washington state. She asked Secretary Turner whether the Administration would abide by court orders demanding the release of such critical funds, to which Secretary Turner responded by stating that he would reserve comments, as this issue is still under litigation.
Watch the full hearing at: https://bit.ly/4l6SjVS
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