by: Amy Alvarado
A recently released federal budget proposal for fiscal year 2026 recommends cutting funding for the U.S. Department of Housing and Urban Development (HUD) by 44%. HUD plays a vital role in supporting affordable housing, preventing homelessness, and promoting community development. It oversees programs such as rental assistance (like Housing Choice Vouchers), public housing, homelessness support services, and housing development grants. Like many federal agencies, HUD is facing reductions in staffing and authority, limiting its ability to carry out mandates set forth by Congress. This would deeply affect communities nationwide, especially those already struggling with housing instability.
Areas of impact of the cuts:
- Reduce rental assistance funding
Cuts could mean fewer Housing Choice Vouchers and reduced support for existing voucher holders, potentially leaving thousands at risk of eviction or homelessness. - Restructure core housing programs
Programs like the HOME Investment Partnerships Program and Community Development Block Grants (CDBG) are critical for building affordable housing and supporting low-income neighborhoods. Restructuring or cutting these programs could mean fewer homes built or preserved and less funding for local services and revitalization efforts that help stabilize communities. - Time Limits on Support
The introduction of time-limited housing assistance would create instability for families who need longer-term support to get back on their feet—especially seniors, people with disabilities, and low-income households. - Eliminating the Emergency Housing Voucher (EHV) Program
The EHV program, launched in 2021 as part of the American Rescue Plan, provides housing vouchers specifically for individuals and families experiencing or at risk of homelessness. Since its inception, EHV has helped more than 47,000 households across the U.S. find stable housing. Eliminating this program would directly impact some of the nation’s most vulnerable residents. - Shifting Funding to State-Run Block Grants
While state block grants offer flexibility, they often lack strong federal oversight and equity requirements, which can lead to inconsistent distribution and reduced support for marginalized communities. States may also redirect funds away from deeply affordable housing priorities. - Two-Year Limit on Housing Assistance
Capping assistance at two years fails to account for the realities of housing affordability and income disparities. Many low-income families, especially those recovering from trauma, unemployment, or housing loss, need more time to achieve financial stability. This proposal could result in abrupt cutoffs and increased housing insecurity.
What our neighbors experiencing homelessness can expect:
- Longer waitlists & fewer resources
- More stays in temporary & emergency shelters
- A continued commitment from CASA to work toward the solution to homelessness: affordable housing. At CASA, we see the power of housing stability every day. Many of our residents rely on rental assistance to afford a safe, permanent home.
What this means for CASA:
- Reduced funding with the elimination of EHV – CASA has used these vouchers to help individuals and families move quickly into permanent housing.
- The limit on funding assistance for our residents could affect CASA’s ability to meet people on their pathway to sustainable affordable housing. We know that pathways aren’t always linear. Many CASA residents have experienced long-term homelessness, live with disabilities, or are rebuilding their lives. For them, housing isn’t a temporary solution, it’s the foundation for healing, safety, and opportunity.
- The support from our donors, stakeholders, and partners is needed now more than ever. Donations and volunteers help stand in the gap – and as that gap continues to widen, so does our need.
