Trump Administration Plans 43% Cut Federal Rental Aid, Risks Worsening Homelessness

President Donald Trump's 2026 budget proposal aims to significantly cut federal housing aid by 44%, including a 43% reduction in rental assistance programs supporting over 9 million Americans, and proposes shifting housing aid administration to states via block grants with capped eligibility. This approach aligns with conservative plans to devolve federal housing responsibilities to states, raising concerns among advocates about states' capacity to address housing needs, potentially increasing homelessness. Trump's trade tariffs have further complicated the housing market by raising construction and maintenance costs, contributing to higher home prices and reduced housing supply. Meanwhile, housing advocates report increasing difficulties in accessing emergency housing, with stricter eligibility rules and budget cuts leaving many vulnerable, including victims of domestic violence, without shelter. Local organizations like the Center for Family Resources highlight the ongoing housing crisis at the community level, assisting thousands of families facing housing instability and food insecurity. Critics warn that Trump's policies, including potential moves to privatize government-backed mortgage entities, risk exacerbating the affordable housing crisis and could lead to economic and humanitarian fallout similar to the 2008 financial collapse.