Chicago – May 04, 2025
President Trump has often vowed to “make America affordable again,” but his administration’s new budget proposal could significantly reduce support for the nation’s most vulnerable renters. The plan seeks to slash federal rental assistance by around 40%, effectively phasing out programs like Section 8 and shifting responsibility to the states to create their own rental aid systems tailored to local needs.
Under the proposal, able-bodied adults would be limited to two years of rental assistance, with more resources directed toward elderly and disabled individuals. While the budget does allocate $25 million for housing support for youth exiting foster care, critics argue that the overall cuts could have devastating effects.
HUD Secretary Scott Turner described the proposal as a bold effort to overhaul programs he sees as inefficient and overly bureaucratic. However, the plan comes at a time when nearly half of renters are struggling with housing costs and homelessness is at record levels.
Housing advocates warn that reducing or eliminating rental aid could push millions into crisis, exacerbating homelessness nationwide. Currently, only about one in four eligible people receive rental assistance, so cutting the program further would deepen an already serious shortfall.
Though the president’s budget sets out his administration’s priorities, Congress controls the purse strings and will ultimately decide what gets funded. Still, lawmakers face mounting pressure to find major budget savings to support broader goals, including Trump’s proposed tax cuts.
