By Eric Cova
On May 2, Smart Growth America responded to President Donald Trump’s discretionary budget request for FY 2026, which proposes deep cuts to programs including Community Development Block Grants (CDBG), the HOME Investment Partnerships Programs, and housing assistance programs — slashing vital housing and community development programs that serve millions of Americans.
“President Trump’s budget proposal is slashing support from the people that need it most, including housing assistance and supply programs during a severe housing affordability and access crisis,” said Beth Osborne, Interim President and CEO of Smart Growth America. “If this approach were adopted, the President’s proposal will harm smaller and rural communities most of all.”
“While bigger cities and coastal metros will certainly feel the negative impact of these cuts, under this budget, smaller and rural communities will struggle to meet even the most basic of their housing and infrastructure needs,” Osborne added.
“Today, I was with mayors from across the country as the news broke—and I saw the air leave the room as they heard programs like CDBG and HOME could be eliminated,” continued Osborne. “These are programs communities rely on. Congress must not abandon their constituents. They must reject this budget proposal and invest in programs that make all communities more healthy, prosperous, and resilient.”
Cumulatively, these budget changes would destroy small towns by defunding local services and local government programs, increase homelessness across the country, and abandon American communities. Smart Growth America urges Congress to exercise their constitutional power of the purse and adopt a budget that supports smart growth strategies and meets the needs of communities of all sizes.
Smart Growth America
Smart Growth America helps create healthy, prosperous, and resilient places to live for all people through research, advocacy, and direct community support. Our work spans housing and land use, transportation, and economic development to find solutions to communities’ most pressing needs. We work with elected officials at all levels, real estate developers, chambers of commerce, transportation and urban planning professionals, and residents to improve everyday life for people across the country through better development.
Eric Cova is the Director of Communications at Smart Growth America.