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The proposed budget would cut many USDA housing programs that help rural Americans. (Adobe photo) | |
President Trump's newly released federal budget proposal cuts billions from rural housing support programs. "If adopted by Congress, key Department of Agriculture rural development and housing programs would be completely eliminated," reports Joe Belden for The Daily Yonder. "Major Housing and Urban Development programs that are important in rural areas also would get zero dollars next year, and many social safety net programs would be cut."
Similar cuts were suggested and rejected during Trump's first term, but this Congress may think differently.
The new budget ends funding for the 502 loan program, which has existed since the 1950s, and has helped "2.2 million low-income rural families to become homeowners," Belden writes.
Trump's 2026 budget cuts billions in U.S. Department of Housing and Urban Development disbursements by ending financial support for Community Development Block Grants and the HOME program, which "were used extensively in rural areas and small cities," Belden reports. "One of the federal government’s most important and largest social safety net programs, tenant-based rental assistance, would be cut by $26.7 billion."
Other proposed cuts that could impact rural communities include the end of the Low-income Home Energy Assistance Program, zero funding for the Community Development Financial Institutions Fund’s discretionary grants and the elimination of the Community Services Block Grant program.
Along with cuts, the proposed budget has a silver lining, which "says that it furthers investment in rural communities by creating a new $100 million award program that would provide access to affordable financing and spur economic development in rural America," Belden explains. "This new program would require 60% of Community Development Financial Institutions’ loans and investments to go to rural areas."
Congress will decide during its budgetary process how to act on the president's budget proposal.