Housing Authorities face a potential funding squeeze—here’s how to stay resilient and continue serving communities.

Housing Authorities across the U.S. are keeping a close eye on Washington following the release of the FY 2026 Federal Budget Proposal.

On March 11, 2025, the White House unveiled a budget that proposes substantial reductions to several key housing and community development programs. These proposed cuts raise important questions for local agencies that rely on federal funding to maintain safe, affordable housing and drive community revitalization.

In this article, we’ll break down what’s changing, why it matters for Housing Authorities, and how agencies can adapt their strategies in response.

What’s Changing in the FY 2026 Federal Budget Proposal

According to the National Association of Housing and Redevelopment Officials (NAHRO), the FY 2026 proposal includes a reduction of over $6 billion to the Department of Housing and Urban Development (HUD) compared to FY 2025 levels. Key areas impacted include:

Programs such as the Housing Choice Voucher (HCV) and Public Housing Operating Fund would maintain similar or slightly increased funding—primarily focused on sustaining existing assistance rather than expanding services.

Why This Matters for Housing Authorities

While the proposed budget is not final and will undergo Congressional review, it signals a significant shift in federal housing priorities. If enacted, Housing Authorities and community development organizations may face:

⚠️ Limited capacity for new development and modernization

Without strong Capital Fund and HOME Program support, agencies could struggle to maintain or modernize aging housing stock.

⚠️ Fewer resources for community revitalization

Eliminating CDBG and the Choice Neighborhoods Initiative removes critical tools for local planning, neighborhood improvement, and resident services.

⚠️ Increased operational pressure

Agencies may be expected to “do more with less,” continuing to serve growing resident needs amid tighter federal support.

How Housing Authorities Can Prepare

1. Strengthen advocacy and stakeholder engagement

Now is the time for Housing Authorities to engage with Congressional representatives and advocate for maintaining essential program funding. NAHRO and other industry groups provide tools and templates to support these efforts.

2. Assess operational resilience

Agencies should conduct scenario planning to understand how potential budget cuts could impact their operations—and where efficiencies can be gained through digital transformation and process optimization.

3. Leverage technology to offset resource constraints

Digital tools like Gilson Housing Partners’ platform can help Housing Authorities:

• Streamline inspections and compliance reporting
• Improve communication with residents and landlords
• Optimize staff workflows to free up capacity for high-impact activities

Investing in technology now can help agencies stay resilient regardless of budget uncertainties.

Gilson’s Perspective: Supporting Agencies Through Policy Shifts

At Gilson Housing Partners, we recognize that evolving federal policies create both challenges and opportunities for Housing Authorities.
Our mission is to provide agencies with flexible, easy-to-use digital solutions that adapt to changing funding landscapes—ensuring that communities continue to receive the housing services they need.

As the FY 2026 budget process unfolds, we’ll continue monitoring developments and sharing insights to help our partners navigate this dynamic environment.

Want to explore how Gilson’s tools can help your agency do more with less?
Request a personalized demo today and see how we can support your team through the FY 2026 transition.

 

Sources:

NAHRO News: FY 2026 Budget Proposal Overview

June 2nd 2025