Trump Proposes 43% Cut to Federal Housing, Section 8, AmeriCorps, Affecting 3.8 Million with State Rental Assistance Block Grant

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Updated May 8, 2025, 12:05 AM

The Trump administration's proposed 2026 budget includes substantial cuts to federal housing and social aid programs, raising concerns among experts and advocacy groups. The plan aims to reduce funding for federal housing programs by approximately 43%, amounting to $26.7 billion in cuts, including programs such as Section 8. This reduction would replace existing federal housing assistance with a State Rental Assistance Block Grant, transferring responsibility to individual states. Experts warn that these changes could adversely affect up to 3.8 million people amid an ongoing housing supply and affordability crisis, with potential for widespread evictions, including around 2,000 people in San Francisco alone. Additionally, the budget targets AmeriCorps, terminating roughly half of its programs, many of which serve communities in states that supported President Trump in the 2024 election. The cuts are also impacting food service programs like Chosen 300, which provide meals to homeless populations and struggling families, as well as small food aid initiatives aimed at low-income senior citizens. The reductions have elicited alarm from aid organizations, including numerous religious groups, that rely on federal funding to deliver free or low-cost food to millions of Americans. The effects are being felt across various states, including Utah and California, where advocates warn of increased homelessness and hardship resulting from the budget proposals.

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Sources

washingtonpost.com(3)dailybulletin.com cbsnews.com ksl.com

Daily Bulletin

@ivdailybulletin

‘Millions out on the street virtually overnight’: How Trump budget could affect California https://t.co/U3QamfYN3J

CBS News

@CBSNews

President Trump's proposed budget for next year could include big changes for a small food aid program that helps low-income senior citizens supplement their diets. https://t.co/OvKNnV58bt

CBS News

@CBSNews

Approximately half of the AmeriCorps programs terminated in a controversial decision by the Trump Administration are projects that serve states and communities President Trump won in the 2024 election, according to a review of the list of terminated AmeriCorps grant programs.