As the head of the Department of Housing and Urban Development defended the agency’s  goal of ushering in the “Golden Age of Homeownership” during a congressional hearing on Tuesday, LeadingAge laid out its concerns on how the government’s playbook would affect low-income older adults.

In testimony before the House Appropriations Committee, Subcommittee on Transportation, Housing and Urban Development and Related Agencies, HUD Secretary Scott Turner said the government “needs a new playbook” and has a small window of opportunity to usher in that “Golden Age.” 

Turner said the proposed fiscal year 2026 budget requests $43.5 billion for HUD and represents a balance between “mission critical programs and much-needed fiscal restraint.” He said the budget request  reflects “excellence, accountability and purpose.”

Turner called the current federal housing system “broken,” saying that HUD assistance is meant to be temporary, not permanent, and that the agency is taking steps to return HUD to its mission and to “fix structural flaws.”

But LeadingAge countered that publicly available information on the budget proposal reveals plans for major HUD program eliminations and deep cuts. 

Specifically, LeadingAge Senior Vice President Linda Couch said the budget proposal undermines efforts to preserve and expand affordable housing by including no funding for Section 202 Supportive Housing for the Elderly, Section 811, housing choice vouchers or Section 8 project-based rental assistance programs.

“Demand for housing far outstrips supply — currently, federal housing programs meet the needs of only one of every three eligible older adult households,” Couch said in a statement.

LeadingAge said it has other concerns with the HUD budget proposal, including the elimination of funding for HUD’s five largest rental assistance programs and key block grants, including the Home Investment Partnerships Program, or HOME, and Community Development Block Grants. Those programs would be replaced with state-run block grants with 42% less funding, which Couch said would threaten the stability of affordable housing for millions of low-income households.

The “drastic reduction” of HUD’s operational capacity also is a concern, LeadingAge said. HUD’s administrative and program office funding would be cut by up to 44%, severely limiting the agency’s ability to manage housing programs, enforce standards and provide oversight, according to the association.

Last week, however, some good news came in that HUD issued grant extension guidance to resident service coordinators for 2025 calendar year programs. Due to severe delays in issuing the guidance, HUD implemented an expedited submission deadline, requiring all grant extension package submissions by June 20.

Within the guidance were moves supported by LeadingAge.

In its communications with grantees, HUD said it would consider a budget increase of 2.5% subject to the availability of funds. The agency indicated that it would prioritize budget increase requests for personnel costs and associated increases in fringe benefits, quality assurance and indirect costs. 

The submission requirements also include efforts to reduce paperwork by requiring a single submission rather than semi-annual reporting requirements.