The White House has proposed a dramatic overhaul of federal rental assistance in its 2026 budget request, cutting funding for the Section 8 housing voucher program and reducing overall rental support by about 40%. Under this plan, the Department of Housing and Urban Development (HUD) would see its budget slashed from \$77 billion to \$43.5 billion, with \$26.7 billion in cuts targeting rental assistance. The current federal Section 8 system, which serves around 2.3 million households, would be replaced with state-managed block grants.
The proposal also introduces a two-year limit on rental assistance for able-bodied adults, shifting the focus to support elderly and disabled individuals. Additionally, \$25 million would be allocated to housing support for youth aging out of foster care. This comes at a time when housing costs are soaring and homelessness is a growing concern nationwide.
