The Trump administration's 2026 budget proposal seeks to cut $163 billion in nondefense government spending, including $33.6 billion from the Department of Housing and Urban Development (HUD). The proposal targets multiple federal housing programs, particularly the State Rental Assistance Block Grant, which is seen as dysfunctional. The administration advocates for states to create programs that meet local needs, arguing that federal programs underfund less critical local projects. Other programs like the Community Development Block Grant and the HOME Investment Partnerships Program face elimination, reflecting a shift towards local governance in housing policy.
The Trump administration's proposal includes cuts of $163 billion to nondefense spending, significantly impacting federal housing assistance programs like those from the Department of Housing and Urban Development.
Cuts to HUD funding will predominantly affect rental assistance programs like the State Rental Assistance Block Grant, which critics argue are dysfunctional and need reform.
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