Today the Trump Administration released its FY2026 spending plan, also known as a “skinny budget.” Overall, the budget proposal seeks to cut non-defense spending by over $163 Billion dollars, and the proposed cuts to programs and resources impacting housing, homelessness, and community development are deep. The spending plan outlines several deep cuts or total elimination of agencies and programs such as:
- Elimination of the Corporation for National and Community Service (operating as AmeriCorps)
- Elimination of the Neighborhood Reinvestment Coalition
- Elimination of the US Interagency Council on Homelessness
- Resources enacted by Congress under the Infrastructure Investment and Jobs Act – cut by $15.2 Billion
- FEMA preparedness grants and state level programs – cut by $646 million
- The elimination of LIHEAP – the Low Income Home Energy Assistance Program
- Community Services Block Grants – cut by $770 million
- Rental Assistance – cut by $26 billion
- Fair Housing enforcement – cut by $60 million
- Resources to build affordable housing – cut by $1.2 billion
- Resources to revitalize communities – cut by $3.3 billion
- The elimination of Community Services Block Grant (CSBG) funding that flows to community action agencies across the country
- Elimination of the Shelter and Services Program
- Reduction in grants for State and Local Programs related to public safety such as programs tied to the Violence Against Women Act
- Elimination of the Community Development Block Grant Program (CDBG)
- Elimination of the HOME Investment Partnerships program
- Elimination of the Native American Programs and Native Hawaiian Housing Block Grant
- Consolidation of the Homeless Assistance Program through the Continuum of Care
- Shifts a lot of responsibilities around rental assistance, emergency shelter, and community services to the state level.
- Elimination of the Pathways to Removing Obstacles (PRO) Housing, and shifting that to the states.
- Elimination of several Rural Development Programs such as grants that support rural business programs, single family housing direct loans, self-help housing loans, telecommunications loans, and rural housing vouchers.
- Elimination of Community Development Finance Institution (CDFI) Fund Discretionary Awards
Other areas with critical cuts worth mentioning that both quality of life and resources in communities include:
- Elimination of Job Corps
- Elimination of the Child Care Access Means Parents in School (CCAMPIS) program
- Office for Civil Rights (OCR) – 35% budget cut or $49 Million
- Elimination of Preschool Development Grants
- The elimination of several programs under the National Oceanic and Atmospheric Administration (NOAA) around climate resilience and education
- Elimination of the Senior Community Employment Program (SCSEP)
- Elimination of the Indian Guaranteed Loan program
As we continue to explore what this means for our work and our state we will continue to release information and our analysis. The President will release a more detailed budget request later this month that includes funding proposals for all agencies, which will officially kick off the annual appropriations process. Congress has until October 1 to enact final spending bills or a continuing resolution to avert a government shutdown.
Join the National Call on HoUSed: Universal, Stable, Affordable Housing on the second and fourth Tuesday of every month at 4pm ET. Join housing and homelessness advocates nationwide to learn more about how to advance long-term solutions to end the housing crisis and achieve housing justice. The next call will feature a more detailed update on the Federal budget. Register for HoUSed Calls here.
