An internal analysis has revealed that a plan by the Trump administration to impose time limits on federal rental assistance for ‘able-bodied’ tenants could have dire consequences for the New York City Housing Authority (NYCHA).
While NYCHA officials have remained largely silent regarding the potential impact of these changes, U.S. Rep. Ritchie Torres (D-The Bronx) has been informed by NYCHA management of a concerning projection: over 300,000 residents could face the risk of losing their homes.
The Trump administration’s preliminary budget for fiscal year 2026 includes a shocking 43% cut to all federal rental assistance programs, which cover both public housing and Section 8, the subsidy program for private-sector landlords.
As part of these proposed changes, the U.S. Department of Housing & Urban Development (HUD) plans to enforce a new cap on federal assistance for households with what they classify as ‘able-bodied adults,’ who would only be eligible for benefits for two years.
This limitation does not extend to senior citizens or tenants with disabilities. Based on HUD’s definition, NYCHA estimates that 316,000 of its residents—representing 61% of all tenants relying on rental assistance—are under the age of 62 and do not report a disability.
Barbara Brancaccio, NYCHA’s chief communications officer, emphasized the seriousness of the proposal.
‘However, in order for this provision to take effect, it would require multi-committee approval in Congress and eventually 60 votes in the Senate,’ Brancaccio added.
Instead of offering insights regarding the potential ramifications of the rental assistance cap, HUD’s press office directed inquires to a statement made by HUD Secretary Scott Turner.
He noted that the budget plan seeks to shift some costs from the federal government to state and local authorities, fostering greater collaboration across different government levels.
‘It creates the opportunity for greater partnership and collaboration across levels of government by requiring states and localities to have skin in the game and carefully consider how their policies hinder or advance goals of self-sufficiency and economic prosperity,’ Turner said.
Torres has vehemently criticized the Trump administration’s stance on subsidized housing in a letter addressed to Turner, pointing to the administration’s decision to allow the Emergency Housing Voucher program initiated during the pandemic to expire.
The Bronx, represented by Torres, has the highest number of emergency vouchers in New York State, with over 2,200 vouchers distributed—accounting for a quarter of all emergency vouchers in the state.
In his correspondence, Torres stressed that Trump’s proposed cuts to federal rental assistance and the introduction of time limits for ‘able-bodied adults’ would lead to significant disruptions for the most vulnerable households.
He warned that the combination of reduced funding and the two-year cap on assistance could displace tens of thousands of subsidized tenants, creating a ripple effect through the housing market.
Torres detailed the likely consequences, predicting that the cuts could lead to prolonged litigation in housing court, widespread rent delinquencies, and a surge in loan defaults across the multifamily housing sector.
A wave of defaults could severely destabilize banks and government-sponsored entities like Fannie Mae and Freddie Mac, especially in light of Trump’s plans to reconsider government backing for these enterprises.
As the situation unfolds, the potential consequences of proposed changes to federal rental assistance loom large for countless NYCHA tenants, underpinning ongoing concerns about affordable housing in New York City.
image source from：https://www.thecity.nyc/2025/05/30/nycha-time-limits-public-housing/
