A Closer Look

A monthly in-depth look at issues affecting people experiencing homelessness and the broader Health Care for the Homeless community

President’s FY27 Proposed Budget Harms Health and Pushes More People into Homelessness

On Friday, President Trump released his Fiscal Year 2027 (FY27) budget request, once again proposing deep cuts to health care and housing programs while increasing defense spending by historic levels. The proposal eliminates key programs and consolidates others within the Department of Health and Human Services (HHS) and the Department of Housing and Urban Development (HUD), targeting preventive health, substance use/harm reduction services, rental assistance, and energy assistance. Like the FY26 budget proposal, the President once again proposes to consolidate critical programs into larger block grants, reducing overall funding levels and pushing costs onto states.

This budget fails to invest in the resources communities need to address homelessness and meet basic needs. Critical programs delivering proven solutions should be expanded, not eliminated.

While the budget includes a $19 million increase in discretionary funding for community health centers (which includes Health Care for the Homeless programs), this falls far short of what communities need to navigate the Medicaid cuts enacted from H.R.1, which will reduce access to care for people experiencing homelessness. 

If enacted, this budget will deepen the impact of H.R. 1, leaving Health Care for the Homeless programs without the resources needed to provide comprehensive care and support services, worsening health conditions and pushing more people into homelessness.  

The President’s budget is a blueprint for Congress but is not law. National Health Care for the Homeless Council calls on Congress to reject this proposal, including the reorganization of key agencies into the Administration for a Healthy America. Instead, we urge Congress to reverse the Medicaid cuts from H.R. 1 and robustly fund domestic health care and housing programs so that low-income Americans can meet their basic needs.

Background details from the budget:

The budget proposes a $15.8 billion cut to HHS (12.5% decrease from FY26), including:

  • Cuts $5 billion from programs in HRSA, SAMHSA, and CDC to consolidate them into the new Administration for a Healthy America, reducing the amount of total funding available for these programs.
  • Cuts $4 billion by eliminating the Low-Income Home Energy Assistance Program (LIHEAP), which helps lower energy costs for low-income households.
  • Cuts $775 million by eliminating the Community Services Block Grant, which helps states to deliver a range of anti-poverty services including housing, nutrition, and employment.  

The budget proposes a $10.7 billion cut to HUD, including:

  • Cuts $393 million by eliminating the Continuum of Care program, replacing it with a pared-down Emergency Solutions Grant.
  • Cuts $3.3 billion by eliminating the Community Development Block Grant, which funds housing, infrastructure and other social service projects in local communities.
  • Cuts $1.3 billion by eliminating HOME investment partnerships program, which expands the supply of affordable housing.
  • Cuts $529 million by eliminating the Housing Opportunities for People with HIV/AIDS (HOPWA), which provides housing and supports to low-income individuals living with HIV/AIDS.
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