The Trump Administration recently released a proposed federal budget that would significantly reduce funding for the U.S. Department of Housing and Urban Development (HUD). Among the proposed changes are substantial cuts to Section8 and other rental assistance programs that serve tens of thousands of Connecticut households. If enacted, it would dismantle the housing safety net for hundreds of thousands of Connecticut residents, disrupt rental assistance payments to landlords, and shift an unsustainable financial burden onto state and local governments.
Below is a summary of what’s included in the proposal, what it could mean for Connecticut, how our elected officials can protect residents from these cuts, and what you can do.
What’s in the Proposed Budget:
- A $33.6 billion reduction to HUD’s budget–nearly 44% below current funding.
- Consolidation of core rental assistance programs (including Section 8 vouchers, Public Housing, and Housing for the Elderly and Disabled) into a single block grant, with nearly $27 billion in associated cuts.
- A proposed two-year cap on rental assistance for able-bodied adults.
- Restructuring of homelessness funding by merging Continuum of Care (CoC) and Housing Opportunities for Persons with AIDS (HOPWA) into a more limited version of the Emergency Solutions Grant (ESG) program.
- Elimination or reduction of housing and community development funding through CDBG, HOME, and other programs.
What This Could Mean for Connecticut:
- Over 73,000 households currently rely on Section 8, Project-Based Rental Assistance, or Public Housing.
- Of these, 22% are elderly and 25% are people with disabilities.
- Rental assistance is already fully subscribed–any reduction could result in households losing support, including many that are not easily served by existing state programs. Currently, due to inadequate funding, only 1 in 4 eligible renters with low incomes actually receive federal rental assistance.
- Converting federal programs into block grants could shift long-term financial responsibility to states, impacting both renters and property owners.
- Housing providers who rely on stable, long-term rental income through HUD programs may face increased uncertainty, making preservation and reinvestment more difficult.
What Happens Next:
- The President’s proposed “skinny” budget kicks off the process, but it’s Congress that decides federal funding levels. Twelve House and Senate appropriations subcommittees now begin drafting their bills, including the Transportation-HUD (THUD) and Agriculture subcommittees that oversee housing programs.
- Once all subcommittees draft their respective bills, they present “markup” bill versions to the full Appropriations Committee, which then reports them out to Congress. The House and Senate must negotiate and reconcile their funding levels into a single bill, which is then sent to the president for approval.
- The President’s full FY26 budget request is expected later in May and will include additional details of the Administration’s spending priorities for FY26 spending, which Congress may take into account during in the appropriations process.
- Both the House and Senate must submit their funding requests for HUD programs to the Appropriations Committee by Friday, May 23. Our federal delegates are seeking input from us this week on the most critical federal programs used in Connecticut – Section 8, Section 202, and HOME – so they can submit informed priority requests to the Appropriations Committee.
- In the coming weeks, members of the President’s Cabinet – including HUD Secretary Scott Turner – will testify before the House and Senate Appropriations Committee.
What You Can Do:
Connecticut’s Federal Delegation
- We need our federal representatives to monitor this proposal closely and oppose reductions in funding for HUD’s core rental assistance and homelessness programs.
- Support and prioritize preservation of the Section 8 Housing Choice Voucher and Project-Based programs as distinct, adequately funded tools for addressing housing need.
State Administration and Policymakers
- Prepare for potential reductions in rental assistance and develop contingency plans including how the state rental assistance program (RAP) can support housing stability for at risk families if federal funding is reduced.
- Prepare for potential increased demand for emergency housing services and other supports.
Connecticut Residents and Organizations
- Contact your members of Congress and educate them about the importance of federal affordable housing investments and why cuts will harm your communities and neighbors.
- If you or your organization benefit from HUD funded programs, you can share your experience with elected officials to better inform their decisions.