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Trump's budget proposal sparks debate in Washington

  • President Donald Trump released his FY26 budget proposal on Friday, calling for $163 billion in federal spending cuts and increased defense funding.
  • The proposal transforms federal rental assistance into state-based formula grants, institutes a two-year cap for able-bodied adults, and eliminates several housing programs.
  • While administration officials praise the budget's consolidation of programs and empowerment of states, critics warn it will slash life-saving aid and worsen homelessness and housing crises.
  • David Dworkin called the proposal 'draconian' and said cutting Housing Choice Vouchers would undercut housing affordability efforts and risk bankrupting apartment owners.
  • The budget sets the stage for contentious congressional negotiations before the September 30 funding deadline, with uncertain prospects for adopting large cuts amid mixed GOP reactions.
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ORF.at News broke the news in Vienna, Austria on Friday, May 2, 2025.
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