HUD Housing Counseling Grants

(Housing Counseling)

Department of Housing and Urban Development

Proposed Cut

$58M

% Reduction

100.0%

Action Type

elimination

Who Is Served

Homebuyers and homeowners receiving counseling; 150+ Women's Business Centers

Summary

HUD's Housing Counseling Assistance program funds a nationwide network of HUD-approved, HUD-certified counselors who give free or low-cost advice to renters, homebuyers, and homeowners on things like buying a first home, avoiding foreclosure, repairing credit, and avoiding eviction. The FY2027 budget proposes eliminating the program entirely, cutting its full $58 million in funding, a 100% reduction, with the administration arguing that private and nonprofit organizations can take over this counseling without federal subsidy.

Who Is Affected

The cut would end funding for a network of more than 4,200 HUD-certified housing counselors working through HUD-approved local agencies across the country. In recent years, this network has served over 1 million households annually, including many low- and moderate-income families, people of color, and first-time homebuyers, along with related support for organizations like Women's Business Centers that help small business owners access housing-adjacent counseling resources.

What this cut would actually mean

Without federal funding, many local housing counseling agencies (often small nonprofits that rely on HUD grants to stay open) would have to cut staff, reduce hours, or close, since private, for-profit alternatives to free counseling are limited and often not accessible to lower-income households. Families facing foreclosure, first-time buyers trying to avoid predatory loans, and renters at risk of eviction would lose a trusted, no-cost source of guidance, likely leading to more loan defaults, foreclosures, and evictions among people who can't pay for private financial counseling.

Sources

Department of Housing and Urban Development (HUD) FY2027 Budget Request: In Brief — Congressional Research Service report confirming the FY2027 budget proposes eliminating the $58 million Housing Counseling Assistance account funded in FY2026.
FY 2027 Trump Budget Request Proposes $73 Billion in Domestic Nondefense Cuts — Novogradac analysis listing the $58 million cut to Housing Counseling Assistance among HUD's FY2027 proposed reductions.
Breaking Down the Numbers: The 2027 White House Budget Proposal Explained — Shelterforce reporting that the program supports a network of over 4,200 HUD-certified housing counselors and that zeroing it out would put those counselor jobs at risk.
Housing Counseling Assistance (NLIHC Advocacy Guide) — National Low Income Housing Coalition summary noting the program served more than 1.1 million households in FY2018.
How HUD's Counseling Services Can Help Homeowners and Home Buyers — Cites HUD data showing HUD-approved housing counseling agencies served 1,015,911 households in FY2019, over half of them minority households.
White House's FY27 Budget Proposes Deep Cuts to Affordable Housing — NAAHL summary confirming Housing Counseling would go from $58 million in FY2026 to $0 in FY2027 under the administration's request.