Native American and Native Hawaiian Housing Programs

(Native American Programs)

Department of Housing and Urban Development

Proposed Cut

$489M

% Reduction

50.0%

Action Type

reduction

Who Is Served

Tribal nations with 68,000-unit housing shortage; 40% substandard housing rate on reservations

Summary

HUD's Native American Housing programs\u2014mainly the Indian Housing Block Grant (IHBG), authorized under the Native American Housing Assistance and Self-Determination Act (NAHASDA)\u2014send formula-based grants to tribal governments to build, rehabilitate, and operate housing on reservations and in Native communities. The FY2027 budget proposes cutting this funding by $489 million, a 50% reduction, with the administration saying tribes should find other funding sources instead.

Who Is Affected

This program is the main federal source of housing help for federally recognized tribes and their tribally designated housing entities (TDHEs), which use the grants for new construction, home repairs, and rental assistance in tribal areas across the country. Tribal nations already face a documented shortage of about 68,000 housing units needed to end overcrowding and replace severely inadequate homes, and roughly 40% of homes on reservations are in substandard condition, far above the U.S. average.

What this cut would actually mean

A 50% cut would mean fewer new homes built, fewer repairs to homes with faulty plumbing, heating, or structural problems, and longer waits for families already living in overcrowded or unsafe housing on reservations. Because IHBG is described by HUD as \u201cthe single largest source of Indian housing assistance\u201d and tribes have limited access to private mortgage credit or alternative investment in remote areas, there is no comparable substitute funding stream tribes could easily tap to make up the loss, meaning the existing housing shortage and substandard-housing rate would likely worsen rather than improve.

Sources

Indian Housing Block Grant Program | HUD.gov — HUD describes IHBG as the primary way the federal government meets its trust responsibility to provide housing to Native Americans and calls it the single largest source of Indian housing assistance.
The Native American Housing Needs Study | HUD USER — HUD's 2017 research study estimating that about 68,000 additional housing units are needed in tribal areas to eliminate overcrowding and replace severely inadequate housing.
Meeting the Housing Needs of Native Communities | Bipartisan Policy Center — Summarizes HUD research on the scale of housing needs in tribal areas, including overcrowding and substandard housing conditions.
Department of Housing and Urban Development (HUD) FY2027 Budget Request: In Brief | Congress.gov (CRS Report R48927) — Congressional Research Service analysis of the FY2027 HUD budget request, describing proposed reductions to Native American housing programs and other HUD accounts.
The Indian Housing Block Grant | Congress.gov CRS product IF12905 — Explains how IHBG funds are formula-allocated to federally recognized tribes and their tribally designated housing entities (TDHEs) for housing development and operations.