Nationwide — The Trump administration recently proposed cutting Section 8 housing vouchers and reducing rental assistance by 40%. The plan suggests replacing the current system with block grants for states, giving them more control over rental aid programs. However, experts warn that this could worsen homelessness across the U.S.

Housing advocates are concerned the cuts would significantly impact low-income families, with some predicting a rise in homelessness. Kim Johnson from the National Low Income Housing Coalition expressed fears that homelessness could “escalate in a way that has been really unprecedented, and unheard of.”

According to Housing Wire, the proposal also includes limiting rental aid for able-bodied adults to two years and shifting remaining funds to support elderly and disabled renters. Currently, only one in four eligible households receives rental assistance.

“Cutting that really feels like cutting into bone,” said Ann Oliva, CEO of the National Alliance to End Homelessness.

Although the plan gives states more flexibility, it also gives them less money. Advocates fear states might divert funds from direct housing aid, creating ripple effects in areas like healthcare, food security, and education.

“They’re not sleeping well. They’re not doing well educationally. They don’t have food,” said Jessica Kubicki of The Housing Collective in Connecticut, pointing to the risks for children.

The proposal also targets other housing programs, including those for affordable housing development, fair housing enforcement, and community improvement grants. The administration claims these funds have been misused, but critics argue the cuts will worsen housing instability.

Meanwhile, a bipartisan group of lawmakers introduced a bill in March to expand Section 8 vouchers, reflecting growing concern in Congress over the proposed cuts.