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Home Local News

Trump budget would slash rental aid by 40% — and let states fill the gap if they want

LAist by LAist
May 3, 2025 10:45 am EDT
in Local News
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President Trump has repeatedly promised to “make America affordable again.” But for those Americans most in need, his administration’s latest budget plan would dramatically shrink the federal rental aid that helps keep millions of people housed.

In its request for the Department of Housing and Urban Development (HUD), the White House called the current system of federal rental assistance “dysfunctional” and proposed essentially ending Section 8 and other housing voucher programs. Its plan calls for cutting rental aid by about 40% and sending that money to states “to design their own rental assistance programs based on their unique needs and preferences.”

It would also impose a two-year cap on rental assistance for able-bodied adults, which it said would ensure an even bigger share of federal subsidies went to the elderly and disabled.

The budget does include $25 million in housing grants for young people aging out of foster care.

In a statement, HUD Secretary Scott Turner called the budget request “bold” for reimagining aid programs that have become “too bloated and bureaucratic to efficiently function.”

The proposal comes as nearly half of all renters are considered cost-burdened and as homelessness is at a record high. Advocates say that if millions of poor people barely making ends meet were to suddenly see their rental aid shrink — or even end altogether — it would tip many over the edge.

“We would see, I think, homelessness escalate in a way that has been really unprecedented, and unheard of,” said Kim Johnson, policy manager with the National Low Income Housing Coalition.

Already, federal rental aid falls far short of need. It’s available for only about a quarter of all people eligible for it. “Cutting that really feels like cutting…

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