Federal Budget Cuts Threaten to Derail Critical Permanent Housing Projects in Fresno County

A looming shadow has been cast over the future of affordable and permanent supportive housing in Fresno County. Local housing officials are sounding a dire warning about a potential federal funding cap, or more accurately, proposed budget cuts that could spell disaster for thousands of families and put essential projects on ice.

At the heart of the crisis are proposed reductions to key housing initiatives managed by the U.S. Department of Housing and Urban Development (HUD). The draft federal budget for Fiscal Year 2026 includes major cuts and even the elimination of core programs like the Community Development Block Grant (CDBG) and the HOME Investment Partnerships Program.

The Programs at Stake

For a place like Fresno, eliminating these federal lifelines would have immediate and catastrophic consequences. Housing experts note that affordable housing developments often require up to seven different funding sources to get off the ground. Removing CDBG and HOME means developers would lose two of the most crucial tools for constructing and preserving affordable homes in both urban and rural parts of the county.

The severity of the situation cannot be overstated. According to leaders at Fresno Housing, these cuts threaten to eliminate critical housing assistance for more than 11,000 households in Fresno County who rely on the Housing Choice Voucher program, more commonly known as Section 8. This potential reduction could displace over 5,500 families, impacting more than 15,000 adults and children in one of California’s hardest-hit housing markets.

Tyrone Roderick Williams, CEO of Fresno Housing, has been vocal about the devastating local impact. The cuts would not only affect vulnerable residents, but they would also rip a massive hole in the local economy. The rental payments that go to local landlords through the Section 8 program inject nearly $12 million a month into the Fresno area. A significant cut to this program could remove an estimated $72 million annually from the county’s economy.

A Crisis on Top of a Crisis

These federal proposals come at a time when the need for permanent housing in Fresno is already critical. There are more than 600 beds of permanent supportive housing available through the Fresno Madera Continuum of Care, but the supply is far outstripped by demand. In 2023, there were only 2,616 beds available in the interim and permanent housing supply for people experiencing homelessness in Fresno County. The city and county also have to contend with other funding threats, including potential delays to the state’s Homeless Housing, Assistance and Prevention Grant program, which could jeopardize hundreds of emergency shelter beds.

The proposed changes to federal housing policy aren’t just about money; they also include a controversial recommendation to impose a two-year time limit on housing voucher use for certain able-bodied adults. Local data challenges this approach, suggesting it typically takes residents five to ten years to achieve the necessary self-sufficiency to move into unsupported housing.

While the budget proposal is not yet law, housing advocates are urging the community to understand the implications of these changes. As Fresno County continues the uphill battle against homelessness and housing instability, the fight to protect these foundational federal programs is now the immediate priority.