City Could Lose Federal Funds That Comprise 76% of Fiscal Year 2026 Housing Department Budget

Pasadena could lose three-quarters of its housing department funding under proposed Trump administration cuts to federal programs, potentially crippling the city’s homelessness response efforts.

The Trump federal budget proposal includes a more than 40% reduction to the U.S. Department of Housing and Urban Development (HUD), which would significantly decrease funding for programs commonly used by local housing departments. 

“President Trump’s full budget request, which was released on May 30, proposes a historic 44% cut to federal housing programs,” said Housing Director Jim Wong. “While the impact of such a funding slash has not been quantified at this time, needless to say the consequences would be dire, leaving many more families struggling to afford rent, and at increased risk of homelessness.”

According to Wong, the president’s budget request represents but a step in the appropriations process, and the power to allocate federal funds lies ultimately with Congress.   “Towards that end, we will engage with our lobbyists, aligned agencies in the region, and housing providers to ensure that the City is able to address critical housing and homeless needs.”

Among the proposed eliminations are the Community Development Block Grant (CDBG) and the HOME Investment Partnerships Program—two critical sources of support for affordable housing development and neighborhood revitalization.

Additionally, the federal proposal calls for shifting rental assistance into a state-based formula grant system. This shift raises concerns about states’ administrative capacity to manage such programs and the risk of long-term funding reductions. States would likely face increased costs to expand administrative infrastructure and provide additional support to housing agencies.

The budget typically changes as it wends its way through Congress. 

City Housing Director Jim Wong was scheduled to present the findings to the City Council Monday night.

In FY 2026, Los Angeles County’s Measure A is set to bring expanded funding for homeless services and affordable housing development to the City. This boost in resources has the potential to strengthen Pasadena’s response to homelessness and help bridge critical funding gaps caused by potential federal cuts.

Homelessness in Pasadena rose 4% over the past year, reaching 581 people, according to preliminary results from the city’s 2025 Point-In-Time Count. The increase includes a 7% rise in unsheltered homelessness, despite the count taking place just six weeks after the Eaton Fire, which forced evacuations and prompted emergency shelter efforts.

The annual survey found 342 people living in unsheltered conditions, up from 321 in 2024. More than half of those individuals reported sleeping on sidewalks or streets, the most visible category of homelessness in Pasadena, according to Wong.

Twelve people counted in shelters said they were directly impacted by the Eaton Fire. City officials said emergency assistance from FEMA, short-term hotel stays coordinated through L.A. County’s 211 system, and temporary Airbnb housing helped blunt the disaster’s immediate impact. By the time of the count, the Red Cross had already relocated its evacuation shelter from the Pasadena Convention Center to Pamela Park in Duarte.

Single adults without children now represent 83% of Pasadena’s homeless population—485 people—a 7% increase from 455 the year before. That group is significantly more likely to experience chronic homelessness (58% versus 21% for families) and long-term health issues or disabilities (72% versus 23%).

The report also showed increased regional mobility among unsheltered individuals. While half of unsheltered residents were last housed in Pasadena—averaging 19 years of residency prior to housing loss—14% had last lived in other parts of the San Gabriel Valley, up from 9% in 2024. In total, 84% of unsheltered individuals reported being last housed somewhere in Los Angeles County.

Veteran homelessness declined for the second straight year, with 29 unhoused veterans counted in 2025, down from 32 in 2024 and 40 in 2023.