County Warns of Devastating Housing Funding Cuts in Proposed Federal Budget

The Los Angeles County Development Authority is sounding the alarm over proposed federal budget cuts that could dramatically impact housing assistance for vulnerable populations. The Trump Administration’s Fiscal Year 2026 budget request seeks to reduce funding to the U.S. Department of Housing and Urban Development by 44%, including a staggering 43% cut to rental assistance programs.

“Veterans want to come home and get housed when we fall on hard times,” said Alberto, a voucher holder who served three tours of duty in Iraq. “We don’t want a hand out, we just want a hand up.”

The proposed budget would fundamentally reshape housing assistance, including converting rental support programs into block grants to states and imposing a two-year time limit on rental assistance for able-bodied adults. The Los Angeles County Development Authority currently serves approximately 31,000 families through housing voucher programs and owns 3,229 public and affordable housing units.

Nearly 70% of the agency’s funding comes from the federal government, with 63% specifically from HUD. The proposed cuts would potentially jeopardize ongoing voucher renewals for current participants and impact developers who rely on voucher rental income to finance affordable housing projects.

The budget also proposes eliminating the Community Development Block Grant and HOME Investment Partnerships Programs. These programs provide flexible funding for low- to moderate-income individuals, with each block grant dollar leveraging $3.64 from other public and private sources.

Jean, a senior homeowner, shared her experience with block grant-funded home improvements: “I’m blind and I got handrails in the back to help me go up and down the stairs. I got a new shower and feel safe when I’m home alone. It was wonderful!”

The Los Angeles County Development Authority said despite challenges it remains committed to preserving and expanding rental assistance, preventing evictions, and supporting stable housing for residents.