Photo: Hemera Technologies / AbleStock.com / Getty Images
President Donald Trump's proposed 2026 budget includes significant cuts to federal rental assistance programs, which could severely impact California. The plan suggests a 43% reduction in funding for housing programs, including Section 8 vouchers, which help low-income families afford rent. The proposal aims to shift the responsibility of these programs to states through a new State Rental Assistance Block Grant, allowing states to design their own initiatives.
The proposed cuts are part of a larger $163 billion reduction in non-defense discretionary spending, targeting programs the administration deems "dysfunctional." CalMatters reports that the budget could lead to millions of Californians losing housing assistance, exacerbating the state's housing crisis.
Experts warn that the cuts could worsen the national housing affordability crisis. Eric Oberdorfer from the National Association of Housing and Redevelopment Officials told The Washington Post that the proposal could directly harm families and local economies.
The budget also proposes a two-year cap on rental assistance for able-bodied adults, a move criticized by housing advocates. Will Fischer from the Center on Budget and Policy Priorities argues that many people will still need assistance beyond two years.
Despite the dramatic cuts, the budget is unlikely to pass in its current form. Historically, Congress has not enacted such severe reductions, and many of Trump's previous budget proposals have been rejected. HousingWire notes that the proposal serves as a starting point for negotiations with Congress, which must approve the budget before it becomes law.