HUD Plans Dramatic 51% Budget Reduction Amid Rising Housing Costs

According to the National Association of Home Builders, approximately 75 percent of families, translating to 100.6 million households, will struggle to afford a median-priced new home in 2025. With homes averaging $459,826 and a prevailing 30-year mortgage rate of 6.5%, both families and government entities face unprecedented challenges in securing affordable housing. For many in Black America, this challenge intensifies due to deep-rooted income and wealth disparities. A recent analysis by Lending Tree revealed that Black households earned a median income of $56,490 in 2023, which is 33 percent lower than the $84,630 of white households. Proposed cuts in the fiscal year 2026 budget for the Department of Housing and Urban Development (HUD) threaten to dismantle long-standing programs, with reductions from $89.1 billion to just $43.5 billion. Advocacy groups like the National Council of State Housing Agencies express grave concerns over the potential consequences of these drastic budget changes.