President Trump’s high-level budget proposal, released on May 2, proposes combining five rental assistance programs—Housing Choice Vouchers, public housing, project-based rental assistance, Section 202 Housing for the Elderly and Section 811 Housing for Persons with Disabilities—into a block grant to states while also cutting funding by $27 billion (43%) below the current level.
A more detailed budget, with proposed funding levels for specific programs, will be released later in May.
It’s not possible to come up with precise estimates of the number of individuals and families that would lose their housing based on the limited info in the budget proposal, but to provide a sense of the scope of the cuts, this is what reducing the number of households in Illinois that are assisted by 43% would mean:
- Terminating Housing Choice Vouchers for 41,409 of 96,300 households
- Taking away Project-Based Section 8 rent assistance from 26,144 of 60,800 households
- Forcing 15,556 of 36,200 public housing households from their homes
- Displacing 2,881 of 6,700 households that include elderly and/or disabled residents who are supported by Section 202 and Section 811
Block granting the program would totally eliminate the federal administrative structure that supports these programs, making states take on the responsibility with totally inadequate funding to do so. And it would certainly mean that fewer households are assisted each year, as the cost of subsidizing each household goes up.
421,500 people in 221,000 Illinois households rely on these five federal rental assistance programs to afford modest housing. Two-thirds, 67%, are seniors, children, or people with disabilities. See more details here.
The Trump administration proposal also would also:
- Combine federal programs that prevent and end homelessness–Continuum of Care (CoC) Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Solutions Grant (ESG)–while also significantly cutting funding. This funding helps support more than 6,400 shelter beds and 10,400 permanent supportive housing units in Illinois
- Cut off funding for more than 1,800 Emergency Housing Choice Vouchers created during the previous administration, forcing these households back into homelessness
- Eliminate the Community Development Block Grant (CDBG) and the HOME Investment Partnerships Program
- Impose a two-year time limit on most recipients of rental assistance and homeless assistance
- Cut funding for lead hazard reduction in homes and water
- Cut fair housing funding based on the argument that its primary function is supporting DEI initiatives
The pages on the HUD proposal are on page 26 and 27 of the budget overview.
Between the CoC, ESG, HOPWA, CDBG and HOME Program, more than $411.6 million came to Illinois in federal fiscal year 2023.
When the complete budget proposal is out, we will work with our national partners to develop a more exact analysis of the impact on people in Illinois.
Congress needs to reject these proposals and expand housing investments toward the goal of guaranteeing that everyone can afford a safe, stable home.
What We Have Been Doing
Since our last update, Housing Action has been focused on getting members of the Illinois Congressional delegation to sign onto “Dear Colleague” letters in support of increasing homeless assistance funding in next year’s budget. Getting many signatures on these letters is a primary means to demonstrate members of Congress care about a specific issue. We expect more Dear Colleague letters on additional issues will be circulated soon.
We are have organizing our members and allies to meet their House members who are in the majority (Representatives Darin LaHood, Mike Bost and Mary Miller) so that their representatives understand the harmful impacts of what is being proposed. We are communicating not just regarding the HUD budget, but also the impact of the overall budget reconciliation process on cutting basic human needs like healthcare and food assistance to pay for tax cuts for the most affluent individuals and corporations.
What You Can Do
Use the National Low Income Housing Coalition’s toolkits and resources to take action:
✅ Tell Congress: Housing is critical. Use the NLIHC Take Action page to contact your representatives. Let them know affordable housing and homelessness programs are essential to your community.
✅ Share real stories. Lawmakers respond to the voices of their constituents. Use this guide to share personal stories that show the human impact of these proposed cuts.
✅ Advocate for homeless services. Visit the National Alliance to End Homelessness advocacy page to support vital homelessness programs.
✅ Defend Fair Housing. Urge your representatives to protect and expand fair housing programs in the federal budget.
Every call, every email, every story makes a difference.
Contact us at advocacy@housingactionil.org with questions or to get more involved.