• The Trump administration is proposing a 43% cut in funding for federal rental assistance programs, including public housing and Section 8 vouchers.
• California, with 560,000 households receiving federal rental assistance, would be disproportionately affected by these cuts.
• Advocates warn that the proposed cuts could exacerbate the housing affordability crisis and increase homelessness, while supporters suggest it could encourage states to reform housing policies.

The Trump administration has proposed significant cuts to federal rental assistance programs as part of its 2026 budget. This proposal targets a 43% reduction in funding for programs including public housing and Section 8 vouchers, impacting millions of Americans and disproportionately affecting California. The administration aims to give states more flexibility in managing these programs, but critics argue that the cuts will worsen the housing crisis and increase homelessness. The proposal is currently under consideration by Congress, which has the ultimate authority to approve the budget.

• What: Proposed 43% reduction in federal funding for rental assistance programs, including public housing and Section 8 vouchers.
• Who: Trump administration, low-income households, California residents, Housing and Urban Development Secretary Scott Turner, Sonya Acosta (Center on Budget and Policy Priorities), Edward Ring (California Policy Center), Sharon Wilson Geno (National Multifamily Housing Council), Matt Schwartz (California Housing Partnership), Lourdes Castro Ramirez (Housing Authority of the City of Los Angeles), Congress.
• When: Proposal is part of the 2026 budget. Section 8 launched in the 1970s.
• Where: Nationwide, with a particular focus on California.

The proposed cuts to federal rental assistance represent a significant shift in housing policy. The administration argues for increased state control and flexibility through block grants, aiming for more efficient program management. However, critics fear that these cuts will exacerbate the existing housing affordability crisis, leading to increased homelessness and hardship for low-income families. The impact on California, with its large population of rental assistance recipients, is particularly concerning. The proposal's fate rests with Congress, where bipartisan support for housing assistance has historically existed, but the current political climate adds uncertainty.

Millions of fewer people would receive assistance, We heard during President Trump’s campaign that his plan was to make housing more affordable and this is really doing the opposite.

Too bloated and bureaucratic to efficiently function...streamline existing programs in order to serve the American people at the highest standard.

These cuts could reverse our progress and further strain local efforts to solve the affordability, housing supply, and homelessness crisis.

The Trump administration's proposal to cut federal rental assistance funding poses a considerable challenge to affordable housing access, particularly in California. While proponents argue that it will lead to more efficient state-level programs, critics warn of increased homelessness and hardship for low-income families. The future of the proposal hinges on Congressional action, and the outcome will have significant implications for millions of Americans who rely on rental assistance to secure housing.