3 Takeaways for Affordable Housing Based on the President’s Budget Proposal

In early May, the White House released it’s “skinny” budget for the 2026 fiscal year. On May 30th, the President’s full Budget Request was released. 

Although the Federal Budget is ultimately Congress’ responsibility, Presidents are required to submit a budget to Congress for consideration.  As summarized by the Congressional Research Service, “the President’s budget submission is a statement of the Administration’s policy priorities and a unified plan for the allocation of federal budgetary resources.  The President’s budget is a set of recommendations that Congress may consider but is not required to adopt.”  The budget also includes recommendations and feedback from the HUD Secretary. 

President Trump’s budget proposes massive cuts and changes to HUD’s programs.  Three high-level takeaways from the model are: 

  • Nearly all programs currently administered at the federal level (HUD Multifamily Project Based Rental Assistance, Public Housing, Housing Choice Voucher Program, etc.) would no longer exist as distinct programs.  
  • A new “State Rental Assistance Program” would be created. Each state would be responsible for administering housing programs, creating versions that would align with federal regulatory requirements – administered in a way determined and designed by that state.  Arguably, this could result in 50 variations of program oversight measures – a significant challenge for those managing entities with portfolios in multiple states and a potential departure from any progress the Department of HUD has made in facilitating consistency in program administration for stakeholders nationwide. The State Rental Assistance Program would “institute a two-year cap on rental assistance for able-bodied, working age households, and would ensure the majority of assistance funded through the states would go to the elderly or disabled.” There would also be separate prioritized funding for individuals exiting foster care programs.
  • The proposal represents a 43% decrease in funding over current levels. This would include the proposed elimination of some smaller programs, like the HOME Program, but also the elimination of significant dollars previously allocated for things like Project-Based Contract Administration Program fees. Additionally, the decrease would lead to a further reduction in HUD staffing levels. 

Now… as you read this, take a deep breath and try not to panic. Remember, Congress ultimately decides how federal dollars are spent. The co-chairs of the Senate Appropriations Committee – representing both parties – have expressed misgivings about the President’s proposed budgets and the level of cuts, citing rental assistance programs as examples of cuts that should not be made.  It’s also important to look at some history here. Some similar budget proposals were made in President Trump’s first term, specifically elimination of the HOME program, but the proposals were not adopted or considered by Congress.   

As industry stakeholders, DeSilva Housing Group is concerned with these proposed measures. We anticipate that, if enacted, this model would make complying with rules and regulations considerably more difficult and would slash rental assistance for thousands of families that are dependent on it for basic housing and shelter.   

What can you do as a stakeholder in this industry?  Actively contribute to grassroot advocacy efforts. Click here to identify your Representative and Senators. Now is the time to let your voice be heard. Several industry groups have information on their sites that offer tools for grassroots advocacy efforts. Reach out to us and we’re happy to connect you with groups that offer these resources.