The Trump administration’s FY 2026 law contains significant cuts to poverty programs.

Housing and Community Development 

• • The law consolidates HUD rental assistance programs (Tenant-Based Rental Assistance, Public Housing, Section 202 Housing for the elderly, and Section 811 Housing for Persons with Disabilities) into state-based block grants.
  • Funding for Community Development Block Grants (CDBG) and the Home Investment Programs are eliminated.
  • Funding for self-sufficiency programs like FSS, Jobs PLus, and ROSS are eliminated.        

• The law includes a two-year cap on rental assistance for able bodied adults.

             Source: www.nahro.org, May 2025

Nutrition Assistance

• Three million dollar cut to Supplemental Nutrition Program for W\omen, Infants, and Children (WIC), reducing the Cash Value Benefits for fruits and vegetables.
• Sixteen million dollar reduction to Child Nutrition Programs including costs to school meals, equipment grants, and the Farm to School Program.
• The Commodity Supplemental Food Pro gram was eliminated. 

            Source:  www.frac.org, June 2025

Workforce Development

• Senior Community Service Employment Program (SCSEP) was eliminated.
• Funding for Americorps and Jobs Corps was reduced, eliminating job opportunities for low -income individuals. 

Source: www.frac.org, May 2025

Additional Cuts

• Low-income Home Energy Assistance Program (LIHEAP)and the Community Service Block Grant (CSBG).
• Funding for the Department of Education was reduced, impacting programs for students with disabilities and teacher preparation.

            www.nationalskillscoalition.org, June 2025

            www.ctepolicywatch.acteonline.org, May 2025

The FY 2026 cuts will undermine efforts to reduce poverty and inequality. The cuts disproportionately affect vulnerable populations, including children, the elderly, and low-income families.  

The cuts will affect Americans with low and moderate incomes, exacerbate poverty, increase food insecurity, and dismantle the tools needed that help individuals escape poverty. www..frac.org, May 2025

These cuts w ill increase poverty, hunger, and health costs, especially for vulnerable populations. They also could lead to job losses and a reduction in economic activity.

www.taxpolicycenter.org, July 4, 2025 www.reuters.com, July 4, 2025

Important Note: 

While the law includes broad spending cuts and impacts anti-poverty programs, it’s essential to understand that the full scope and impact of the legislation may evolve as it is implemented and further analyzed. www. taxpolicycenter.org, July 4, 2025