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Will Federal Budget Cuts Threaten Section 8 Housing Vouchers?

February 28, 2025

Friday, February 28, 2025

On Tap Today

  • HUD’s haircut: There is concern that the Section 8 housing program might be cut or payments might be delayed due to cuts by DOGE.

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The Trump administration, with the help of the newly created Department of Government Efficiency (DOGE), is slashing its way through Federal spending. One of the line items that is now on the chopping block is the Section 8 housing vouchers that are given to about 9 million renters every year. Cuts to the program, or even delays in getting vouchers out, would create hardships for the qualifying low income renters and could also hurt landlords who have leased to them.

Section 8 housing vouchers are paid for by the Department of Housing and Urban Development (HUD). HUD was created in the 1970s and expanded in the 90s with the mission to “create strong, sustainable, inclusive communities and quality affordable homes for all.” The main vehicle they have to do so is through Section 8 vouchers that can be paid directly to landlords. Last year HUD spent $32.4 billion on Section 8 rental assistance, almost half of their entire budget.

Now that budget, as well as the staff employed to spend it, are being looked at as ways to trim Federal spending. A leaked document shows a proposal to cut 4,000 HUD positions, around half of the agency’s staff. Even if the Section 8 program remains that much of a reduction in staff would make it hard for HUD to send the payments to the local housing authorities that then pay them directly to landlords.

Landlords who do rent to Section 8 tenants will find themselves in a bad position. Most leases state that as long as renters continue to pay their portion of the rent they can not be evicted. Even if a landlord decides to sell a property the Section 8 leases will be transferred with it and right now, with the uncertain state of the program, buyers will likely be looking for a significant discount for these kinds of properties.

The concern is that, even if the program continues, the threat of disruption in Section 8 payments will likely scare landlords away from renting to Section 8 tenants. “This program only works well when landlords are involved,” Georgi Banna, general counsel for the National Association of Housing and Redevelopment Officials “Without landlords, this program can’t exist.”

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