The plan would also cap rental aid for able-bodied adults at two years
By: Jonathan Delozier
[17:07, 5/8/2025] Faizan NEWS: The potential elimination of Section 8 housing vouchers and roughly 40% cuts to rental assistance were included in a recent White House request to the U.S. Department of Housing and Urban Development (HUD).
The cuts, first reported by NPR, target core HUD programs like Section 8 vouchers, replacing them with block grants to states.
The White House described the current system as “dysfunctional” and said that states should be allowed to “design their own rental assistance programs based on their unique needs and preferences.”
The plan would also cap rental aid for able-bodied adults at two years, reallocating any remaining funds toward elderly and disabled recipients, according to NPR.
Experts warn of housing crisis
Housing advocates say the proposed cuts could cause a dramatic increase in homelessness.
Kim Johnson of the National Low Income Housing Coalition told NPR that she thinks “homelessness [could] escalate in a way that has been really unprecedented, and unheard of.”
Currently, only about one in four eligible households receives rental aid.
“Cutting that really feels like cutting into bone,” said Ann Oliva, CEO of the National Alliance to End Homelessness.
Oliva also raised alarms about proposed changes to homelessness funding, which would reduce local control and prioritize short-term shelters over permanent housing.
“Homelessness is a very local issue,” she said. “It happens in people’s neighborhoods, it happens on city blocks and in city streets.”
Shifting burden to states
Under the proposal, states would have more discretion over how federal housing funds are used — but less money to work with.
NPR noted that similar block grant programs, such as welfare, have often been redirected away from direct aid. States could theoretically supplement the lost federal funding with their own resources, but advocates are skeptical.
Jessica Kubicki of The Housing Collective in Connecticut warned of ripple effects.
She pointed to increased demand for emergency rooms, food assistance and overcrowded schools.
“They’re not sleeping well. They’re not doing well educationally. They don’t have food,” Kubicki said of children most in need of assistance.
Federal budget proposes more cuts
The newly released federal budget proposal also calls for eliminating programs that support affordable housing development, fair housing enforcement and community improvement grants.
The administration argues that these funds have been misused, citing projects like “skate parks and concert plazas.”
In the meantime, COVID-era emergency housing vouchers are running out faster than expected due to rising rents. HUD has warned local agencies to prepare for that funding to end as early as next year, NPR added.
The Trump administration has already pushed out thousands of HUD employees and canceled contracts that support low-income housing — signaling a broader pullback from federal housing support.
A report published last month by The New York Times also pointed to the administration’s intent to drastically cut Section 8.
In March, a bipartisan group of lawmakers from the House of Representatives and the Senate introduced a bill that seeks to expand Section 8.
Citing the federal budget uncertainty, the Housing Authority of the City of Los Angeles announced in March that it has stopped accepting new applications for Section 8 vouchers.
