Budget Hearing – U.S. Department of Housing and Urban Development

House Subcommittee on Departments of Transportation, and Housing and Urban Development, and Related Agencies

2025-06-10

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Summary

The subcommittee convened to discuss the Department of Housing and Urban Development's (HUD) fiscal year 2026 budget request with Secretary Scott Turner, who was a Big Ten champion in a previous life[ 00:05:30 ] . The budget proposes a significant reduction of $35.5 billion, or 51%, from the FY25 enacted budget, leading to widespread concern and skepticism among committee members. The debate centered on the rationale for these cuts, their potential impact on vulnerable populations, and the details of proposed programmatic reforms[ 00:09:35-00:10:08 ]

Themes

Proposed Budget Cuts and Impact

HUD's budget request for fiscal year 2026 is $33.2 billion, representing a substantial $35.5 billion decrease from the FY25 enacted budget, which committee members noted was not a typo[ 00:07:09 ]

. This significant reduction in discretionary budget authority raised deep concerns about its impact on HUD's mission and operations[ 00:09:35-00:09:48 ] . Critics highlighted proposed eliminations of vital programs such as Section 8, public housing, and housing for the elderly and disabled, as well as community development block grants. A $27.6 billion reduction to rental assistance programs was specifically questioned regarding its ability to serve the nation's most vulnerable[ 00:09:53 ] . Secretary Turner defended the cuts, arguing that they are necessary to address waste, fraud, and abuse within HUD's current programs, which he described as inefficient and bloated[ 00:20:21-00:20:29 ] . He stated that HUD assistance should be temporary, serving as a "trampoline, not a hammock"[ 00:20:44 ] . The Secretary also pointed to savings from canceling "DEI contracts" and recovering funds from inactive contracts, totaling over $2 billion. However, many members expressed strong disbelief that such significant cuts could avoid devastating consequences for low-income and vulnerable Americans[ 00:38:21-00:38:46 ] .

Shift to State-Based Rental Assistance (Block Grants)

A central element of the budget proposal is the establishment of a State Rental Assistance Program, which would consolidate major HUD rental assistance programs into block grants managed by the states. This proposal suggests a shift in how assistance is provided, giving states more flexibility to design and administer their own rental assistance programs and identify unique local needs. Secretary Turner emphasized that the goal is to serve Americans "better" by empowering states to be more thoughtful and precise in their stewardship, particularly for the elderly and disabled. Concerns were raised, however, about the lack of defined formulas for this new program and the potential for increased homelessness or hardship if not carefully implemented[ 00:21:52-00:21:53 ]

. Members questioned whether states, some with their own existing challenges, would have the capacity or resources to effectively manage these programs, especially given the proposed federal funding reductions.

Effectiveness of HUD Programs and Homelessness Crisis

The meeting highlighted the severe housing crisis in the U.S., with 31% of American households burdened by housing costs and over 771,000 people experiencing homelessness[ 00:08:34-00:08:56 ]

. Despite HUD's budget increasing significantly in recent years, the Secretary noted that homelessness has risen, and only one in four eligible families receives federal rental assistance, indicating a failure of the current system. This inefficiency, he argued, necessitates a "new playbook" to achieve better outcomes. Committee members detailed the devastating impacts of homelessness on veterans, foster youth, and communities lacking basic infrastructure, like colonias. Secretary Turner also advocated for increased partnerships with faith-based and nonprofit organizations, citing successful models like the Gospel Rescue Mission that achieve results without government funding[ 01:05:30-01:05:44 ] .

Racial Disparities and Fair Housing

Concerns were raised about existing racial disparities in housing, with a disproportionate number of African American (56%) and Hispanic (53%) households spending more than 30% of their income on rent compared to white Americans (47%)[ 00:12:49-00:12:52 ]

. The budget proposal was criticized for its cuts to fair housing enforcement and attempts to deregulate longstanding civil rights laws. The ranking member recounted the historical context of redlining and discriminatory practices against Black veterans, which created a racial wealth gap that persists today. Secretary Turner mentioned his efforts to undo the "Obama-Biden era affirmatively furthering fair housing rule," which he perceived as turning HUD into a "national zoning board".

Tone of the Meeting

The tone of the meeting was largely contentious and confrontational, particularly from Democratic members[ 00:37:50-00:37:59 ]

. Many expressed deep skepticism and frustration with Secretary Turner's proposals and the perceived lack of specific, data-driven plans to support the radical budget cuts[ 00:38:02-00:38:20 ] . There was widespread concern regarding the potential negative impacts on vulnerable populations, with some members directly accusing the Secretary of harming the people he is sworn to serve[ 00:09:35-00:09:53 ] . Secretary Turner, while maintaining a polite demeanor, often took a defensive stance, reiterating his arguments about inefficiency and the necessity of a "paradigm shift" and "new plays" for HUD[ 00:23:28-00:23:31 ] . The discussion was punctuated by several sports analogies, particularly golf and football, used by both the Secretary and committee members to illustrate their points[ 00:06:05-00:06:19 ] .