The Trump administration’s proposal to slash Department of Housing and Urban Development Funding could leave New York state especially vulnerable, given its outsized reliance on federal housing assistance.
The president — who lived in New York for decades — proposed a budget that would cut HUD’s budget by almost 43%, which would mean a loss of billions spent helping people afford housing across the country. And it would stop funding federal housing programs advocates and Democrats say are vital.
In New York state, more than a million people rely on federal housing assistance, according to a report from January by the Center on Budget and Policy Priorities. New York received more than $818 million from HUD in 2024, hundreds of millions more than any other state.
Compounding the issue is that New York already ranks as one of the most expensive states to live in, and already faces major demands in a limited housing market. Across the state, the average time spent in HUD rental assistance programs is 15 years, according to the New York Housing Conference. In New York City public housing, the average tenant remains in their home for approximately 26 years.
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“If this budget went into effect it would cause an explosion of homelessness in New York, across the state in urban and rural areas, at a time where homelessness is already at record levels,” Rebecca Zangen, chief policy officer at the Supportive Housing Network of New York, a nonprofit advocacy group, told NOTUS.
Trump’s budget proposes a $26.7 billion cut from Section 8 and other housing programs. The state relies heavily on these — according to New York data collected by HUD, 243,000 households use Section 8 housing choice vouchers, 100,000 households live in Section 8 project-based housing and 164,000 households reside in public housing.
The Trump budget proposes reallocating the remaining funds for these programs into a new program that “empowers States by transforming the current Federal dysfunctional rental assistance programs into a State-based formula grant which would allow States to design their own rental assistance programs based on their unique needs and preferences.”
A spokesperson for Gov. Kathy Hochul said in a statement to NOTUS the president’s budget risks “putting New York families on the street and limiting their access to safe and secure homes.”
“While the Governor is doing everything in her power to protect New Yorkers from these devastating blows, no state in the nation can backfill the cuts that the President is proposing,” the spokesperson said in the statement.
Rep. Dan Goldman, a Democrat who represents a New York City-area district, told NOTUS he’s already begun to hear from housing providers and nonprofits concerned about Trump’s budget proposal.
“This would be absolutely devastating to hundreds of thousands of people in New York who rely on [housing assistance], and they certainly have realistic expectations that this aid will continue so that they can remain in their homes,” Goldman told NOTUS.
Goldman made the point that Congress would need to sign off on such a budget, but that’s not something that’s particularly reassuring to some of his colleagues.
Rep. George Latimer, whose district includes a small portion of New York City, told NOTUS he expects Trump’s proposed cuts would likely make it through the Republican-controlled Congress.
“When you cut that money, states and nonprofits aren’t going to be able to backfill that with their money, so you’re going to have an overall reduction in how these programs operate,” Latimer said. “These cuts are going to be devastating in our area.”
Advocates warned that such drastic cuts would have ramifications that would go well beyond the people who currently rely on public housing assistance.
“Trump’s proposed budget could have really detrimental effects on the business and real estate markets, especially in New York, and as a New York real estate owner, Trump knows that,” Cea Weaver, director of a statewide tenant coalition called Housing Justice for All, told NOTUS. “Landlords need Section 8 in order to keep their doors open.”
HUD did not respond to questions on the implications of the budget for New York, referring NOTUS back to a statement from the agency from earlier this month.
“President Trump’s bold budget proposes a reimagining of how the federal government addresses affordable housing and community development. It rightfully provides states and localities greater flexibility while thoughtfully consolidating, streamlining, and simplifying existing programs to serve the American people at the highest standard,” HUD Secretary Scott Turner said in the statement.
The proposed cuts are in line with changes the administration has already pursued — it has sliced HUD’s workforce and budget, rolled back fair housing protections and called for federally funded homeless shelters to restrict access to noncitizens.
Rep. Paul Tonko said he found Trump’s budget proposal “offensive.”
“Just how much more can we throw onto a given population? To cut funding even more, it just seems unrealistic and offensive,” Tonko said.
Democrats in Washington have rallied together to oppose ongoing changes to HUD, and they have been quick to question the agency’s actions. They’re forming caucuses, introducing legislation, and hosting protests alongside advocates.
“Our nation is experiencing a housing crisis, and New Yorkers are certainly not immune,” Rep. Grace Meng said in a statement to NOTUS. “While every community has its unique housing needs — especially across the five boroughs — these federal programs ensure that millions of Americans always have a stable and affordable place to call home.”
And some advocates are warning that while New York would be heavily affected by such cuts, it wouldn’t happen in a vacuum.
“Whether you’re a landlord in Manhattan or in a small town in another state ... to kind of change the terms like this so drastically without any consultation from the partners that have been part of this program with the federal government,” said Rachel Fee, the executive director of New York Housing Conference, a nonprofit advocacy group. “I think if this were enacted into law, it would really shake the housing industry nationwide.”
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Amelia Benavides-Colón is a NOTUS reporter and an Allbritton Journalism Institute fellow.
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