HUD Tightens Section 8 Eligibility, Trump Proposes Funding Shift

The Section 8 housing program is facing significant changes under President Donald Trump's administration, with HUD requiring stricter citizenship verification and a proposed 2026 budget aiming to replace Section 8 with state-controlled block grants that limit rental assistance to two years for most able-bodied adults, sparking concerns from tenant advocates. Meanwhile, the HOME Investment Partnerships Program, which has supported over 1.3 million affordable homes especially in rural areas, faces elimination under Trump's budget proposal, raising fears of setbacks in affordable housing development in underserved regions. Progressive resistance to new housing supply, particularly from 'supply skeptics' who oppose market-rate developments and emphasize local control, is also threatening affordable housing expansion in cities like New York and Los Angeles. In Washington D.C., Trump's federal crackdown has coincided with a cooling real estate market, as buyers and sellers proceed with caution amid increased law enforcement and economic uncertainty. The administration is also considering declaring a national housing emergency to leverage federal influence on local zoning reforms and is exploring initiatives like auctioning federally owned land to increase housing supply, following examples from cities with streamlined permitting policies. These developments reflect a complex landscape where federal policy shifts and local opposition intersect, affecting the future of affordable housing nationwide.