A proposal to slash federal housing assistance programs and impose limits on housing aid will devastate many parts of New York City where residents rely on housing vouchers to rent apartments, according to a new report.
In addition, landlords who take in renters who rely on federal assistance would also feel the ripple effects, with many landlords, lenders and even banks to face defaults, according to a policy brief released by the nonprofit New York Housing Conference on Tuesday.
President Donald Trump’s fiscal year 2026 budget request to Congress proposed a 44% cut to funding for the U.S. Department of Housing and Urban Development (HUD), which threatens the rental assistance of millions of low-income Americans. It also seeks to convert critical housing programs, like Section 8 and Public Housing, into state-controlled block grants, while proposing a two-year term limit on aid for non-elderly, non-disabled households — a radical shift that would make housing support temporary and unpredictable, the report said…