The White House is considering deep cuts to federal housing programs, including a sweeping overhaul of aid to low-income families, in a reconfiguration that could jeopardize millions of Americans’ continued access to rental assistance funds.
The potential changes primarily concern federal housing vouchers, including those more commonly known as Section 8. The aid generally helps the poorest tenants cover the monthly costs of apartments, town homes and single-family residences.
Administration officials recently discussed cutting or canceling out the vouchers and other rental assistance programs and potentially replacing them with a more limited system of housing grants, perhaps sent to states, according to three people familiar with the matter, who spoke on the condition of anonymity to describe the confidential discussions. The overhaul would be included in President Trump’s new budget, which is expected to be sent to Capitol Hill in the coming weeks.
The exact design and cost of the retooled program is unclear, and any such change is likely to require approval from Congress, as White House budgets on their own do not carry the force of law.
But people familiar with the administration’s thinking said the overhaul under discussion would most likely amount to more than just a technical change, resulting in fewer federal dollars for low-income families on top of additional cuts planned for the rest of the Department of Housing and Urban Development.
Federal voucher programs currently provide assistance to about 2.3 million low-income families, according to the government’s estimates, who enroll through their local public-housing authorities. The aid is part of a broader universe of rental assistance programs that are set to exceed $54 billion this fiscal year. But the annual demand for these subsidies is far greater than the available funds, creating a sizable wait list as rents are rising nationally.