The White House has released an initial “skinny” version of its Fiscal Year (FY) 2026 Discretionary Budget Request. A full version of the budget request is expected later this month. It is clear from the summary document that the Administration recognizes the unique and urgent needs of our nation’s rural communities. That said, the budget looks to wind down the federal government’s historic role in addressing those needs by dramatically reducing or eliminating most of the housing and community development programs currently in place. Once freed of these public programs, the Administration expects private sector investment and new programs at the state and local levels to drive rural prosperity.

“I am confident the Administration sees and appreciates America’s small towns and rural places. I am also confident that cutting rural housing programs in the middle of a housing shortage is going to drive rents and home prices higher,” said David Lipsetz, President & CEO of the Housing Assistance Council. “The landlords and developers we work with are already seeing prices spike on lumber, appliances and other goods. They can’t afford to lose the federal government as an investor and partner.”

“HAC was excited to see President Trump on his very first day in office direct federal agencies to find ways to reduce housing costs for American families. It is difficult to understand how eliminating the HOME program and reducing Native American housing support, dramatically cutting HUD’s tenant-based and project-based rental assistance, and eliminating USDA’s homeownership program can achieve the goal of cutting housing costs. Rural America is worthy of investment, and the investments made in housing today will return to us tenfold in the future as we spur vibrant rural economies.”

HAC is ready to work with the Administration to invest in rural communities and make good on the promises to build thriving rural economies with plenty of housing at a price rural families can afford.

Read HAC’s full analysis of the Administration’s FY 26 Budget.