Trump wants to cancel nearly 98% of funding for HUD housing support program

Multiple housing groups are suing the administration in an effort to preserve the funding.

1 minute read

October 2, 2026, 7:00 AM PDT

By Zachary Whalen


A view from below the HUD. The building is gray with a grid of windows.

The government currently allocates $57.5 million to the Department of Housing and Urban Development’s housing counseling program; the Trump administration intends to cancel $56.1 million of that funding. | Liberty Chinoda

The National Urban League, along with housing groups from several states, sued the Trump administration on Sept. 29 to try to stop it from canceling nearly all of the Department of Housing and Urban Development’s funding for its Comprehensive Housing Counseling program. The government currently allocates $57.5 million to the housing program; the Trump administration intends to cancel $56.1 million of that funding, a nearly 98% reduction.

The HUD’s Comprehensive Housing Counseling program “funds nonprofits that help people with foreclosure prevention, renting, budgeting and buying a home,” Raymond Fernández writes for the Washington Sun. The plaintiffs are hoping a judge declares the Trump administration acted unlawfully and requires the government to distribute all of the allocated money to the program.

The Washington Sun reports:

A spokesperson for HUD told The Washington Sun that the administration’s rescission is in accordance with President Donald Trump’s “constitutional responsibility that the laws are faithfully executed.”

“HUD is entrusted to ensure that taxpayer funds be deployed in alignment with the President’s policy agenda,” the spokesperson said.

Wednesday, September 30, 2026 in The Washington Sun

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