The Trump Administration’s FY27 Budget Places Fair and Affordable Housing Out of Reach for Everyday People 

FOR IMMEDIATE RELEASE: 

The Trump Administration’s FY27 Budget Places Fair and Affordable Housing Out of Reach for Everyday People 

Washington, D.C. – On Friday, April 3, 2026, the Trump Administration released its FY27 budget proposal. Despite the nation’s escalating fair and affordable housing crisis the Trump Administration’s FY27 budget continues to propose drastic cuts, including eliminating critical HUD programs. The release of the President’s budget proposal comes as the nation commemorates the passage of the landmark Fair Housing Act of 1968, which passed seven days after Dr. Martin Luther King, Jr.’s horrific assassination. 

If passed, the Administration’s proposed budget would result in: 

• Eliminating the local Fair Housing Initiatives Program (FHIP), which is a program created under the Reagan Administration that funds cost-efficient, community-based nonprofits to ensure access to housing opportunities for seniors, disabled veterans, families with children, people with disabilities, women, people of color, people of faith, and more;  

• Eliminating funding for the National Fair Housing Training Academy (NFHTA), which provides fair housing training to FHIP and FHAP organizational partners. The Fair Housing Assistance Program (FHAP) funds state and local agencies to enforce fair housing laws substantially equivalent to the federal Fair Housing Act;  

• Eliminating the Limited English Proficiency Initiative (LEPI), at a time when we are seeing a record number of housing discrimination complaints based on national origin. The LEPI is designed to ensure that limited English Proficient (LEP) communities have access to information in their native languages on HUD programs, services and activities;  

• Allocating only $26 million for the state/local Fair Housing Assistance Program (FHAP) with no new money to make up for cutting other federal fair housing programs and failing to recognize that at least 12 states and many localities do not have FHAP-funded agencies to assist victims of housing discrimination, at a time when FHAP agencies are more necessary than ever with HUD’s retreat from active fair housing enforcement; and 

• Allocating only $62.6 million for HUD’s Office of Fair Housing and Equal Opportunity (FHEO). As a result of last year’s actions spearheaded by the so-called Department of Government Efficiency (DOGE), staffing levels at FHEO have been drastically reduced by 41.7 percent, and these proposed funding levels would lock in those staffing cuts. Even before DOGE’s attacks, FHEO had been under-funded and under-staffed to do its important work, which includes implementing and enforcing the Fair Housing Act, operating and maintaining an administrative complaint process, investigating complaints from the public, taking enforcement actions, and referring complaints to the Department of Justice. FHEO also develops regulations to carry out the Fair Housing Act and monitor HUD’s own programs to ensure they are serving all communities equitably. FHEO needs increased funding and to see a reversal of staffing cuts made by DOGE to ensure the office has the resources needed to effectively enforce the Fair Housing Act. 

 “These harmful proposed cuts will impact everyday people, including disabled veterans, seniors, and rural residents, trying to secure housing free of discrimination with the ability to live and thrive in well-resourced communities,” said Nikitra Bailey, Executive Vice President, National Fair Housing Alliance. “If FHIP is eliminated, the work done by community-based fair housing organizations throughout the nation will cease, and people who are facing potential acts of discrimination will not be able to access direct assistance. This retreat in fair housing enforcement would hit virtually every corner of the country. Without local fair housing organizations, victims of discrimination will have no recourse and will be at risk of losing their housing despite existing federal protections for people based on race, color, national origin, religion, sex (including gender identity), family status, or disability. This will be devastating as affordability remains a top concern and people everywhere are struggling in the throes of the nation’s fair and affordable housing crisis.” 

The Administration’s attempts to remove funding from the nation’s important fair housing programs are not new. Last year, the Trump Administration proposed similar cuts to vital fair housing programs. However, due to the hard work of community advocates and strong bipartisan support of lawmakers, Congress maintained crucial fair housing funding. This support highlights the importance of the local organizations funded through the Fair Housing Initiative Program (FHIP), that processed over 74 percent of all housing discrimination complaints filed in 2024. Meanwhile, the Administration is abdicating its obligation to enforce fair housing and civil rights for all the people of America.  

Congress must once again work to ensure that any FY27 spending bill maintains funding for our nation’s vital fair housing programs.  

Click here to view a one-page summary of the issue. 

The National Fair Housing Alliance® (NFHA™) leads a coalition of organizations and individuals that works to end housing discrimination, expand equitable opportunities, and build inclusive, well-resourced, and resilient communities where people can thrive.