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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 64 June 2025 J O U R N A L niche non-governmental organizations and institutions of higher education committed to radical gender and climate ideologies antithetical to the American way of life." Among the cuts, reductions, and consolidations found in the review is a reduction of nearly $33 billion in funds to the U.S. Department of Housing and Urban Development (HUD), nearly $27 billion in State Rental Assistance Block Grants alone. According to the budget, "The Budget empowers states by transforming the current federal dysfunctional rental assis- tance programs into a state-based formula grant which would allow states to design their own rental assistance programs based on their unique needs and prefer- ences. The Budget would also newly in- stitute a two-year cap on rental assistance for able-bodied adults and would ensure a majority of rental assistance funding through States would go to the elderly and disabled. A state-based formula program would also lead to significant termina- tions of federal regulations. In combina- tion with efforts related to opening up federal lands, this model would incentiv- ize states and the private sector to provide affordable housing. This proposal would encourage states to provide funding to share in the responsibility to ensure that similar levels of recipients can benefit from the block grant." The budget mentions the recently es- tablished partnership between HUD and the U.S. Department of the Interior (DOI) on a Joint Task Force on Federal Land for Housing to identify underutilized federal lands suitable for residential development, streamlining land transfer processes, and promoting policies that increase the availability of affordable housing. "President Trump's proposed 2026 housing budget will drive up homeless- ness and force apartment owners and operators out of business," commented David M. Dworkin, President and CEO of the National Housing Conference (NHC). "The budget proposal cuts nearly 44% from the Department of Housing and Urban Development—gutting critical housing and homelessness programs and eliminating highly successful and bipar- tisan programs like HOME and Family Self-Sufficiency. Further, the budget calls for the elimination of NeighborWorks America—a highly effective organization that serves the housing needs of com- munities throughout the United States, especially in underserved rural areas in red states. These proposed reductions would have a devastating impact on mil- lions of Americans, particularly the most vulnerable among us, and would directly lead to increased homelessness across the country and the bankruptcy of many private businesses that own and operate affordable housing." Among HUD's Major Cutbacks National Housing Law Project (NHLP) Executive Director Shamus Roller released the following statement in response to the FY 2026 Budget: "All Americans, across race, place, and party, value the freedom to make a good living, care for our families, and live in a stable home. President Trump's proposed bud- get cuts life-saving programs that keep poor and working people housed, fed, and healthy. This comes on top of three months of unlawful attacks by Trump and Elon Musk on the basic infrastruc- ture of our government. Congress must do its job, ignore Trump's budget propos- al, and return to governing. That starts with a fully funded budget that protects us all from harm and prevents evictions of the most vulnerable families. Our country's budget must serve all of us and not just the billionaires." In addition to slashing HUD's State Rental Assistance Block Grant program, the FY 2026 Discretionary Budget Request focuses on several major HUD programs: • Community Development Block Grant (CDBG) Program: The Budget proposes to eliminate the CDBG pro- gram, which provides formula grants to more than 1,200 state and local governments for a wide range of com- munity and economic development activities. Cutting the CDBG program "President Trump's proposed 2026 housing budget will drive up homelessness and force apartment owners and operators out of business." —David M. Dworkin, President and CEO, National Housing Conference