The Housing Counseling Assistance program — the primary federal funding source supporting HUD-approved housing counseling agencies nationwide — narrowly survived elimination in the FY2026 federal budget process. The President’s FY2026 budget proposed zeroing out the program’s $57.5 million in funding, arguing that housing counseling responsibilities should shift to state and local governments and the private sector. After significant advocacy efforts, Congress held firm, and the final FY2026 appropriations bill, signed into law in February 2026, maintained the program at the $57 million level with FY2025.
While this is a critical short-term win for housing counseling agencies and the clients they serve, housing professionals should be aware that this threat is not over. The administration’s intent to eliminate the program is on record, and future budget cycles will require continued vigilance and advocacy from the housing counseling community.
This development is part of a broader proposed 44% cut to HUD’s overall budget, which also targeted programs including HOME, Community Development Block Grants, the Fair Housing Initiatives Program, and multiple rental assistance programs serving millions of low-to-moderate income households across the country.
Housing professionals are encouraged to stay informed, engage with advocacy organizations, and communicate the value of housing counseling services to legislators and community stakeholders.