Proposed Fiscal Year 2026 Budget Raises Concerns for Housing Stability in NJ

By Alexyss Panfile

While government funding is ever changing as administrations transition, the Fiscal Year 2026 (FY26) proposal made by President Trump includes drastic budget cuts to a list of vital federal programs. Included in the list of proposed federal budget cuts are social services such as WIC (Women, Infants, and Children), Supplemental Nutrition Assistance Program (SNAP), Low-Income Home Energy Assistance Program (LIHEAP), and Housing and Urban Development (HUD).

Family Promise of Sussex County (FPSC) provides essential assistance to the unhoused population in Sussex, Warren, Hunterdon and Morris counties. Their services include eviction prevention, mobile assistance, utility assistance through LIHEAP and Universal Service Fund (USF), and housing stabilization; all of which have been beneficial to individuals in a housing crisis utilizing their services. This significant cut to HUD funding poses a threat to the level of support FPSC will be able to provide through these grant funded programs.

On May 30th, the full FY26 budget was released by President Trump and HUD Secretary Scott Turner. As stated by the National Low Income Housing Coalition, “the full budget request proposes a historic 44% cut to HUD’s vital affordable housing, homelessness, and community development programs.” This amounts to a funding slash of $26.72 billion from last year’s budget.

A significant budget cut like this one will result in millions of people losing their housing vouchers, and organizations will lose the ability to provide future assistance. In addition, the request includes an entire redesign of all HUD rental assistance programs. Family Promise of Sussex County has experienced a loss in grant support, which has enacted the need for difficult program revisions and the need to identify other funding sources.

FPSC’s 2024 Annual Report highlights statistics that showcase the effectiveness of the programs they offer: “During 2024 FPSC assisted over 300 households in various rehousing and housing stabilization programs. Approximately 80% of clients saw positive outcomes and reestablished permanent stable housing. Over 1900 households were provided assistance in applying for utility benefits to help alleviate the financial burden on the household.” The loss of funding for these programs will, without a doubt, negatively impact current clients they serve and will increase the number of new clients that will not be able to receive assistance.

With the new fiscal year starting October 1st, it is vital that members of the community take action against these proposed budget cuts. This can be done by calling New Jersey senators Cory Booker and Andy Kim, as well as Thomas Kean, Representative for New Jersey's 7th congressional district. Ultimately, the final federal budget decision lies in the hands of Congress.

About Family Promise of Sussex County

The mission of Family Promise of Sussex County is to secure housing stability and sustainability for those in crisis…because everyone deserves a home. Our vision is that every individual and family shall have a home, a livelihood, and the chance to build a better future. We offer many services and a dedicated team of individuals that are available to assist our clients in attaining these goals. Learn more at https://familypromisesussex.org.