Trump Housing Plan Sparks Outcry Over Threat to Section 8 Vouchers

WASHINGTON – A controversial new housing proposal from the Trump administration is drawing fierce backlash from tenant advocates, who warn it could displace millions of low-income Americans.

The plan, leaked last week, would replace approximately 2.3 million Section 8 housing vouchers with block grants to states and municipalities. Section 8 currently allows low-income families to rent homes in the private market with federal assistance, often covering a significant portion of their monthly rent. Critics say converting the program into block grants would dramatically reduce oversight and funding, leaving vulnerable families with fewer protections and limited options.

Advocacy groups such as Leaders and Organizers for Tenant Empowerment (LOFTE) say the plan would gut the existing safety net, increase evictions, and deepen the housing crisis. “This proposal is a direct attack on working families,” said a LOFTE spokesperson. “It hands control to local governments with fewer guardrails and less money. That’s a recipe for mass displacement.”

Housing experts fear that under the block grant model, federal funding would no longer be guaranteed to rise with need or inflation. Historically, block grants have been associated with shrinking budgets over time, as seen in programs like Temporary Assistance for Needy Families (TANF). In areas with high housing costs, like New York, Los Angeles, and Miami, the impact could be catastrophic.

The Trump administration argues that local governments are better positioned to design housing strategies tailored to their communities. But opponents say this gives states the ability to prioritize other interests over housing — or divert funds entirely.

This isn’t the first time such an overhaul has been attempted. Similar efforts in 2018 and 2019 were ultimately defeated after public outcry. But with Trump now back in office and Republicans controlling key budget committees, housing advocates are worried the plan has a real shot.

Some states are already preparing for worst-case scenarios. In addition to rent support, federal housing vouchers often include funding for security deposits, utility allowances, and relocation costs — all of which could be scaled back or eliminated under the block grant model.

More than 23,000 low-income families in some states currently rely on federal vouchers to access stable housing. If this new proposal becomes law, those families could be among the first to suffer — left scrambling in a housing market that continues to outpace wage growth.

LOFTE and other organizations are urging Congress to reject the plan and protect federal housing assistance. “You don’t fix a housing crisis by taking away housing,” the group said in a statement.