NAR Sounds Alarm Over Proposed Federal Housing Program Cuts

The National Association of Realtors® urged Congress not to take an axe to several housing programs in the coming federal budget.

President Donald Trump released a proposed discretionary budget for fiscal year 2027 last month. Among its major changes are a 13% decrease in funding at the U.S. Department of Housing and Urban Development, impacting a number of housing programs.

Congress must approve the budget, and it frequently makes changes. The House Appropriations Committee will hold a hearing with HUD Secretary Scott Turner on May 12.

Federal funding for Housing Choice Vouchers, and HUD's fair housing and counseling programs, are tools that promote homeownership, NAR's 2026 President, Kevin Brown, said in an April 30 letter to Senate and House committees.

Brown also called for continued funding of HOME Investment Partnerships and Community Development Block Grant (CDBG) programs. Those face total elimination in the budget proposal. But they give flexibility to localities to help them tackle housing needs, and encourage private-sector investment, Brown said.

"Federal housing programs are a critical part of the solution, and we must maintain and strengthen investments in them to help communities address the full spectrum of their needs," Brown said in the letter.

Federal budget pitches major housing cuts

Trump's budget request cuts $10.7 billion from HUD's formula, including programs "which have proven ineffective and have funded woke and leftist organizations."

Among those cuts is a prospective elimination of the CDBG, HOME and Pathways to Removing Obstacles to Housing programs. Cutting all of them would eliminate $4.6 billion from the budget, according to White House documents.

The White House also wants $60 million in cuts to fair housing programs. That includes an elimination of the Fair Housing Initiatives Program, the Fair Housing Training Academy, and a program for limited English proficiency.

The White House accused FHIP of funding "woke nonprofits that promote radical equity policies and advocate against single-family neighborhoods."

Those programs allow local governments to tailor a strategy for their local housing shortage, Brown said. The budget changes overall risk, undermining housing support at a time when the Trump administration has made housing a significant priority. Congress, too, has a major bipartisan housing bill aimed at affordability.

"These programs not only expand access and affordability but also support efficient real estate transactions by reducing barriers to homeownership," Brown said.

Realtor.com® economist Joel Berner said home counseling "might be the most direct lever for increasing homeownership." That's especially important as first time homebuyers trend increasingly older.

"In addition, HOME Investment Partnerships offers down payment assistance to lower-income buyers that can really make the difference on a home purchase being made, and it finances the construction of new affordable housing units as well," Berner said.

Meanwhile, the fair housing programs are "fundamental" for Realtors, Berner said.

"Losing those organizations would not change Realtors' legal obligations, but it would take away valuable resources for supporting Realtors' compliance with fair housing laws," Berner said.

More housing program changes pitched for 2027

The Bipartisan Policy Center tracked substantial changes to other housing programs outside of HUD. That includes a potential elimination of the Treasury Department's Community Development Financial Institution Fund, saving $205 million. The budget also cuts the Commerce Department's Economic Development Administration and its programs, saving $449 million.

HUD's $73.5 billion budget includes some new line items, including $160 million for the Federal Housing Administration to ensure home loans are processed efficiently, as well as a $5 million foster youth to independence initiative.

And it increases funding for the Department of Veterans Affairs' Homeless Programs Office by 16%, adding $531 million to its veterans programs.

The cuts have alarmed other housing advocates. The Campaign for Housing and Community Development Funding, a collection of 70 housing advocates, urged full funding for housing programs, arguing they promote resident stability.

Congress has often pushed back on White House priorities. Some of the proposals in the 2027 budget are not new, Berner said. CDBGs, for instance, have been a frequent target of the Trump administration that Congress has refused to eliminate.

"It's unlikely that these get completely axed, but even marginal cuts can have major impacts," Berner said.