Rural News
Jennifer Emerling / There Is More Work To Be Done
Jennifer Emerling / There Is More Work To Be Done
HAC CEO Responds to FY 2027 Budget Proposal
On Friday, April 3rd, the White House released its full Fiscal Year (FY) 2027 Budget Proposal. While there are a few improvements over FY 2026 for housing affordability programs, the Housing Assistance Council (HAC) is gravely concerned about the number of programs that are slated for underfunding or elimination.
“The FY 2027 budget includes positive steps, such as restored support for USDA’s Section 502 Direct program,” said David Lipsetz, President & CEO of the Housing Assistance Council. “We welcome support for low-income homeownership during an affordability crisis. However, the proposal falls short of what is needed by failing to preserve the nation’s aging stock of rural rental housing and eliminating proven initiatives.”
At the U.S. Department of Agriculture (USDA), funding for both USDA’s Section 515 Rural Rental Housing and its Multifamily Preservation and Revitalization programs would remain at FY 2026 levels, but the budget fails to provide returns on investment or asset management fees for nonprofit and public agency owners. Additionally, although the budget continues to support Stand‑Alone Rental Assistance to protect tenants when USDA mortgages mature, it proposes eliminating Section 542 vouchers without clearly addressing the impact on current households currently in the voucher program.
If enacted, the Administration’s budget proposal would be particularly damaging to people experiencing homelessness and unaffordable housing by eliminating a number of Department of Housing and Urban Development (HUD) programs that have a proven track record when it comes to serving Americans. The proposal eliminates the HOME Investment Partnerships Program, the Community Development Block Grant (CDBG), the Continuum of Care Program, the Housing Opportunities for Persons with AIDS (HOPWA) Program, Native American programs and Native Hawaiian Housing Block Grants, and fair housing activities.
HAC commends the Administration’s focus on rural-serving Community Development Financial Institutions (CDFIs) in its Treasury Department funding proposal. But our organization recognizes we live in a deeply interconnected nation. We have argued that if rural areas are left behind, the whole nation suffers. The opposite is true also; thus we cannot condone the Administration’s dramatic funding reduction and consolidation of the current CDFI grant programs into a single Rural Community Development Fund.
Perhaps most concerning, the proposal severely cuts funding for capacity building and technical assistance for rural communities. More than anywhere in America, small towns and rural places can struggle to maintain the expertise needed to succeed in the complex world of housing and community development. The budget calls for eliminating Rural Capacity Building at HUD and both the Rural Community Development Initiative and Preservation Technical Assistance at USDA. Such cuts to technical assistance and capacity building programs will prevent community organizations from getting new housing projects off the ground, while also limiting the critical resources they need to complete ongoing projects.
HAC urges Congress to strengthen the FY 2027 budget by restoring technical assistance for rural housing preservation, ensuring rental assistance transitions do not leave tenants behind, fully funding all programs at HUD, and providing nonprofit owners with the tools they need to sustain affordable housing over the long term. In addition, HAC also urges Congress to continue the efforts begun in the Fiscal Year 2026 appropriations bill by specifically adding language to compel the Administration to spend appropriated funding. Read HAC’s full analysis of the Administration’s Fiscal Year 2027 budget proposal for USDA and for HUD.
