Section 8 is not getting cut-off, but it may be significantly scaled back, along with other changes.
The Trump administration’s latest budget proposal seeks to slash federal rental assistance-including Section 8-by about 40%. The plan would also impose a two-year limit on rental subsidies for able-bodied adults and shift responsibility to states by consolidating various housing programs into a new State Rental Assistance Block Grant.
Advocates warn these cuts could lead to a dramatic increase in homelessness and make it harder for millions of low-income Americans to afford housing. While the proposal is significant, it is important to note that Congress must approve the budget, and such deep cuts may face resistance from lawmakers.
Is Section 8 Getting Cut-Off
The possibility of the Trump administration slashing Section 8 and other HUD rental assistance programs by around 40% is a serious and concrete proposal, not just talk.
The administration released a “skinny” budget request in early May 2025 that signals a full FY26 (Fiscal Year) budget plan aiming to cut HUD spending by about 44%, including an unprecedented 43% cut to rental assistance programs like Section 8.
However, this budget request is only a proposal and does not have legal force; Congress must approve federal funding. Historically, similar deep cuts and policy changes proposed by the Trump administration during its first term were blocked by Congress after strong advocacy and opposition. Congressional leaders have already expressed serious concerns about these cuts.
In summary, the cuts are a serious possibility as part of the administration’s priorities, but whether they will be enacted depends on the congressional appropriations process, where there is significant resistance and advocacy to protect these programs.
Specific changes are being proposed for the Section 8 program
The Trump administration is proposing significant changes to the Section 8 program as part of a broader overhaul of federal housing aid. Here are the key specifics based on current reporting:
Deep Funding Cuts
The administration is considering sharply reducing the overall funding for Section 8 vouchers, which could limit the number of new vouchers issued and potentially lengthen already long waiting lists for assistance.
Program Restructuring
There is discussion of replacing the current federal voucher system with a more restricted framework, possibly converting rental assistance into block grants managed by states. This would give states more control but likely with less federal funding and oversight.
Impact on New Applicants
Some local housing authorities have already paused accepting new Section 8 applications due to uncertainty about future funding. Current voucher holders are expected to remain unaffected for now, but those waiting for assistance could face even longer delays or lose the opportunity entirely.
No Immediate Change for Current Recipients
For now, those who already have Section 8 vouchers are not expected to lose their assistance, but the program’s ability to serve new families would be severely limited.
The exact details are still being finalized and would require Congressional approval before becoming law.
Potential benefits of replacing Section 8 vouchers with state-run grants
Potential benefits of replacing Section 8 vouchers with state-run grants could include:
Increased Flexibility
States might have more freedom to design programs tailored to local housing markets and specific community needs, rather than following federal guidelines.
Administrative Efficiency
If implemented well, block grants could potentially reduce federal administrative burdens and allow states to streamline processes, possibly leading to faster or more responsive assistance.
Opportunity for Innovation
States could experiment with new models or approaches to housing assistance that might be more effective in certain regions.
However, experts widely caution that these potential benefits are largely theoretical and depend heavily on adequate funding, clear goals, and strong oversight.
Most evidence suggests that block grants often lead to reduced funding over time and may exacerbate housing hardships for low-income families.