A key federal housing program that has helped deliver more than a million affordable homes across the United States is now at risk of losing its funding. The HOME Investment Partnerships Program, established in the early 1990s, has been excluded from the latest budget proposal backed by Donald Trump and House Republicans.
The grant, administered by the US Department of Housing and Urban Development (HUD), is widely used in underfunded rural areas to support small-scale housing projects. Advocates warn that its removal would disproportionately impact regions already struggling with high construction costs, limited investment, and persistent poverty.
HOME Funding Supported over 1.3 Million Homes, Mostly in Rural Republican Districts
According to Associated Press analysis, the HOME program has helped build or rehabilitate more than 1.3 million affordable homes since its inception. Of these, at least 540,000 units were located in rural or heavily rural districts. Notably, 84% of these homes were built in congressional districts that voted for Trump in the 2024 presidential election.
The grant is particularly vital in remote areas such as eastern Kentucky, West Virginia, and Tennessee, where local nonprofits are often the sole providers of affordable housing. According to Fahe, a regional housing coalition, HOME funds fill the gap between construction costs and market sale prices—something few private investors are willing to underwrite.
Partnership Housing in Owsley County, Kentucky—one of the poorest in the US—has relied on HOME for more than a decade. Its director, Cassie Hudson, stated the organization now builds only a quarter of the homes it previously did due to rising costs and stagnant funding. Similar challenges have been reported by housing nonprofits in Appalachia, where economic decline and depopulation have strained community resources.
Loss of HOME May Weaken Broader Affordable Housing Strategies
The proposed budget cuts could also undermine national housing tools that depend on HOME for matching funds. The Low Income Housing Tax Credit (LIHTC), the primary federal mechanism for financing affordable rental housing, uses HOME grants to fund 12% of its units—roughly 324,000 homes, according to Urban Institute research.
HUD has defended the proposed cuts by stating the program is less efficient than other funding models. However, bipartisan efforts are underway to streamline HOME’s regulatory hurdles rather than eliminate it. According to Tess Hembree, head of the Council of State Community Development Agencies, reducing HOME funding will not cause immediate evictions, but will result in a long-term decline in new housing supply.
