President Donald Trump's budget proposal last month suggested total cutting funding for housing and community development, which state and local governments use to improve neighborhood conditions and increase the housing supply.
As budget season begins on Capitol Hill, Republicans have introduced a spending bill that preserves the subsidies and are working with Democrats to pass housing affordability legislation that would build on these programs.
— I'm disappointed to see that [Biuro Zarządzania i Budżetu] proposes eliminating these important programs, says the chairwoman of the Senate Transportation and Housing Subcommittee, Republican Cindy Hyde-Smith.
The atmosphere during last week's meeting to consider the administration's request for budget cuts of USD 10.7 billion, i.e. approx. PLN 39 billion (which represents a 13% reduction in expenses), was hot.
The cost of living is a key issue in the 2026 elections. Congress hopes to make housing affordability a bipartisan bill it can address before the midterm elections. Republicans are trying to show that they are focused on the economic well-being of Americans.
The president's budget bill aims to completely eliminate long-standing programs that provide billions of dollars in flexible financing that states and localities can use to improve neighborhoods and increase housing supply.
The White House and the authorities responsible for these programs did not respond to requests for comment.
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“We will not agree to cuts”
In its budget proposal, the Trump administration argues that subsidy programs were abused to finance initiatives of a liberal ideological natureciting projects that prioritized sustainable energy or incorporated diversity, equity and inclusion goals.
But Republican members of the Congressional Budget Committee present a completely different picture.
“From my vantage point in West Virginia, I can say it was a very effective program,” Republican Sen. Shelley Moore Capito said during a Senate hearing with Turner this month.
The chairman of the House Budget Committee, Republican Tom Cole, appeared at a meeting of the House Transportation and Housing subcommittee and reminded his colleagues to “remember that this is where the authority of the Budget Committee lies and we will be the ones making these decisions.”
“I can assure you that we will not agree to cuts of this magnitude in these programs,” he added, referring to popular bipartisan block grants as well as funding for Native American housing.
House Republicans introduced their HUD budget bill this week [Departament Mieszkalnictwa i Rozwoju Miast Stanów Zjednoczonych]which retains the subsidies although recommends reducing the level of funding for the HOME program [Program Partnerstwa Inwestycyjnego] in the next financial year.
The chairman of the House Transportation and Housing Committee, Republican Steve Womack, tells POLITICO that the federal budget “will have to be bipartisan, and anyone who doesn't understand that is simply not living in reality.”
Mike Wallace, legislative director at the National League of Cities [amerykańska organizacja lobbingowa, która reprezentuje niemal 20 tys. miast, miasteczek i wsi w Stanach Zjednoczonych]says these grants are popular among both parties, in part because of their flexibility and broad applicability to communities of all sizes across the country. Republican and Democratic members of Congress hear from local governments and community nonprofits about how these funds are contributing to development in their districts.
— Members need to know, “How will this benefit my district?” explains Wallace. — If they see that, everything becomes a lot easier.
Republican Senator John Kennedy, a member of the budget committee and the banking committee that oversees HUD, supports the use of Community Development Block Grant funds [Dotacja Blokowa na Rozwój Społeczności, jeden z najdłużej działających programów Departamentu Mieszkalnictwa i Rozwoju Miast Stanów Zjednoczonych, finansuje lokalne działania na rzecz rozwoju społeczności, których celem jest zapewnienie mieszkań w przystępnej cenie] to encourage states and municipalities to promote an increased supply of housing.
“I think it's a program worth fixing,” Kennedy told POLITICO when asked what he thought about the administration's argument that the subsidies should be eliminated.
Trump has his way, Democrats have theirs
Although eliminating these housing programs also appeared in last year's White House proposal, Trump has not shown a deep commitment to budget cuts. The president supports the bipartisan housing affordability bill, which includes provisions on the use and update of subsidy programs. A version of this bill passed the House of Representatives with an overwhelming majority on Wednesday.
Still Democrats say the suggested cuts support their argument that Trump is out of touch with the needs of most Americans.
“He mainly cares about the arch, the ballroom and other things,” top Democratic member of the budget committee Rosa DeLauro told POLITICO. “He really doesn't care what happens to Americans.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
