According to newly published documents, the proposed overall funding for HUD would drop dramatically from $89.1 billion in FY25 to $43.5 billion in FY26, marking a 51% reduction.
The proposal calls for a 44% reduction in HUD funding and consolidation of rental assistance programs into a single state-administered block grant, shifting administrative responsibility to states and reducing federal oversight.
If passed, this measure would require owners to recognize tenant organizations and engage with them on issues related to building conditions, lease enforcement, and community needs.
A new federal tax credit would support the construction or rehab of affordable, owner-occupied homes in neighborhoods where development costs exceed market values.
The IRS recently released population data in Notice 2025-18 that will be used to calculate each state’s limits for 9 percent Low-Income Housing Tax Credits (LIHTCs) and private activity bonds (PABs). These figures determine the annual volume caps for these critical affordable housing resources. The new figures reflect both an increase in national population and an increase in the per capita allocation rates, resulting in record-high national totals.
Four nonprofit fair housing organizations representing a proposed class of more than 60 groups across the country recently filed a sweeping federal class action lawsuit challenging HUD and the newly created Department of Government Efficiency (DOGE) for abruptly terminating $30 million in federal grant funding.
The National Low Income Housing Coalition (NLIHC) recently released its 2025 edition of The Gap: A Shortage of Affordable Homes. The report offers an update on the persistent shortfall in housing for extremely low-income renters. According to the report, in the United States there are just 35 homes available for every 100 extremely low-income renter households.
IRS regulations will once again be subject to White House review through OIRA, reinstating a policy from Trump’s first term that adds another level of scrutiny to IRS rulemaking.
