As part of the ahi's Memorandum of Understanding with the National Association of Housing Redevelopment Officials (NAHRO), we've been following recent sector developments in the USA. NAHRO's response to Trump's budget proposal—including a message from their President, George Guy—acts as a reminder for us here in Australasia of the fragility of government funding and support.
On 30th May 2025, the Trump Administration released its full fiscal year (FY) 2026 budget proposal , adding very little additional detail to the “skinny budget” released on 2nd May. Typically, the President’s proposed budget is a messaging document that is unlikely to become law, and Congress retains the final authority in deciding the contours of the FY 2026 budget.
The President’s budget proposes two major changes, among others, to the Department of Housing and Urban Development’s (HUD’s) programs: devastating cuts to housing and community development programs and the creation of a State Rental Assistance Block Grant.
First, the proposed budget would make a series of changes to community development programs. The HOME Investment Partnerships (HOME) and Community Development Block Grant (CDBG) programs, which provide critical resources to communities across the country, are proposed to be eliminated. The budget would additionally consolidate the Continuum of Care (CoC) program and Housing Opportunities for Persons with AIDS (HOPWA) into a more targeted Emergency Solutions Grant (ESG) program. Funding for individuals would be capped at two years.
Second, the proposed State Rental Assistance Block Grant would combine funding for Public Housing, Section 8 Tenant-Based and Project-Based Rental Assistance, Housing for the Elderly, and Housing for Persons with Disabilities into one block grant to the states—and cut the total funding to the program by $26.718 billion overall. The proposed grant program would also place a two-year cap on rental assistance for able-bodied adults and would eliminate funding for self-sufficiency programs.
NAHRO firmly opposes the scope of these cuts and block-granting rental assistance to states. Enacting these proposals would have a devastating impact on millions of families across the country and block-granting funding would make it easier for Congress to cut rental assistance in the future.
The appendix containing the President's full budget proposal can be found
here (HUD’s proposed budget begins on page 461).
NAHRO PRESIDENT'S MESSAGE: Protecting the present and reaching for the future
NAHRO family,
America is going through a growing affordable housing crisis. As housers and community builders, we house millions of families nationwide. However, for each family we provide with a home, at least three more are eligible for aid but don’t receive it.
NAHRO’s vision is thriving communities with affordable homes for all. We may seem a long way away from that, but every home makes a difference: a safe and stable place where someone can rest after a long day of work, tend to a sick loved one, study for a test, and cook a family meal. Last week, the administration released a “skinny budget” for FY 2026 that proposes a 43% cut to housing funding. Remember that the current funding only allows us to serve about one out of every four people who qualify for it.
The good news is that this budget proposal is just that - a recommendation that marks the beginning of the appropriations process. The House and the Senate still need to write their proposed FY 2026 spending bills and reconcile them before they vote on a FY 2026 budget to send to the White House. We’ve got time, but we can’t wait - send your messages to your elected officials now.
We must advocate to keep our current residents housed and find ways to help the other 75% who qualify for housing assistance but can’t get it. That’s why we need to speak up: use NAHRO’s Action Alert Center to send letters to your Senators and members of Congress. You can call them, too - NAHRO’s recent blog post has resources for finding their phone numbers.
As we deal with current challenges and the need for quick action, we must continue to invest in the people and the communities we serve. I hope to see you all from 17th-18th July at NAHRO’s Summer Symposium in New York, where we’ll do just that with national and global housing leaders, sessions that spotlight international and domestic best practices, and intimate roundtables where you can share challenges and solutions with fellow housers.
Thank you for all you do - and all you’re going to do - for your residents and communities.
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