According to Econostrum, a long-standing housing grant that has helped thousands of families own homes in rural America could soon disappear. The program’s removal is part of Donald Trump’s latest budget proposal, sparking concern across affected communities. With bipartisan lawmakers now divided, the future of affordable homebuilding in underdeveloped regions hangs in the balance.
A key federal housing program that has delivered 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 Trump and House Republicans. Administered by the U.S. Department of Housing and Urban Development (HUD), the grant is widely used in underfunded rural areas to support small-scale housing projects.
Advocates warn that eliminating the program would disproportionately impact regions already struggling with high construction costs, limited investment, and persistent poverty.
According to records, the HOME program has helped build or rehabilitate more than 1.3 million affordable homes since its inception. Of those, 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 help bridge the gap between construction costs and market sale prices—something few private investors are willing to underwrite.
In Owsley County, Kentucky, Partnership Housing has relied on HOME for more than a decade, and accoreding to it's director, Cassie Hudson, the organization now builds only a quarter of the homes it once did due to rising costs and stagnant funding. Similar challenges are reported by housing nonprofits across Appalachia, where economic decline and depopulation have further strained community resources.
The proposed budget cuts could also weaken national housing tools that depend on HOME for matching funds. The Low Income Housing Tax Credit (LIHTC), the nation’s 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, arguing the program is less efficient than other funding models. But bipartisan efforts are underway to streamline HOME’s regulatory requirements rather than eliminate it altogether.
Tess Hembree, head of the Council of State Community Development Agencies, said reducing HOME funding will not cause immediate evictions but will lead to a long-term decline in new housing supply.
Info via Econostrum
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