FY 2027 Budget Request: HUD Funding Reduced, Core Housing Programs Preserved

This morning, the President released his FY 2027 Budget Request, and unlike last year, when the president proposed many steep spending cuts that Congress never granted, this budget request does not call for cuts to Section 8 or public housing, nor does it call for block-granting these programs.

Remember, this budget request typically highlights an administration’s priorities, but Congress handles federal spending issues and is free to reject them and often does.

The budget allocates $73.5 billion for HUD, less than the enacted amounts for 2025 ($77 billion) and 2026 ($84.2 billion). Still, this is about $30 billion more than the FY 2026 request of $43.5 billion, which had suggested a $27 billion reduction by cutting Section 8, public housing, and block grants. The Low-Income Housing Tax Credit is not addressed, and no significant tax plans are expected since the Treasury will not release a “Green Book.”

Disappointingly, the budget proposes to eliminate programs such as CDBG, CDFI Fund, HOME, Homeless Assistance, Housing for AIDS, Native American Block Grants, Pathways to Removing Obstacles, Fair Housing, and Housing Counseling. Congress strongly opposed these reductions in the FY 2026 THUD spending bill.

As of now, we do not expect the FY2027 budget to pass until after the mid-term elections, when Democrats may win control of the House. As has been the case for many years, a continuing resolution is likely at the end of this fiscal year into 2027. This, of course, could change the dynamic for HUD funding.

We will continue to monitor updates and any new information regarding this proposal, and thank you for keeping up the drumbeat for affordable housing.