The Atlanta Housing Authority has recently approved its budget for fiscal year 2026 amid significant uncertainty regarding federal funding, particularly in light of potential cuts from President Donald Trump’s administration.
This new budget reflects an 18% increase from fiscal year 2025, marking the largest hike the agency has encountered in the last five years. However, it comes alongside concerns about how the agency will continue funding essential programs for low-income families in Atlanta.
In a statement following the budget approval, Atlanta Housing CEO Terri Lee highlighted the “shifting federal funding environment.” She expressed confidence that the agency can maintain fiscal discipline while striving to keep families housed, promote pathways to self-sufficiency, and advance real estate development initiatives.
Lee’s executive letter attached to the budget emphasizes the anticipated reality of reduced federal funding.
“Even so, Atlanta Housing will continue to place increased urgency on helping families prosper through the creation and preservation of housing in healthy neighborhoods,” Lee wrote in her letter dated June 25.
The fiscal year 2026 budget has been characterized by a projected 15% decrease in overall funding, which marks the most significant contraction the agency has faced in five years. For the first time since fiscal year 2023, Atlanta Housing is looking at budget cuts instead of increases, according to a review conducted by the Atlanta Journal-Constitution.
This decrease primarily stems from concerns over substantial potential cuts in federal funds that could significantly impact the agency’s ability to operate. The budget book explicitly states that the drop in anticipated revenue is due to this uncertainty regarding federal appropriations.
The budget indicates that a substantial $423.1 million—representing 93% of the entire budget—will be derived from the U.S. Department of Housing and Urban Development’s Moving to Work demonstration program.
Among other funding sources, $62.5 million will be drawn from the previous year’s Moving to Work funds. Utilizing reserves from this program is a common practice for the Atlanta Housing Authority, which has participated for over two decades. The agency has consistently allocated millions from these reserves in recent budgets, demonstrating a pattern of reliance on prior funds to ensure continuity in operations.
In fiscal year 2025, for example, Atlanta Housing drew down $67 million from the program, slightly more than the figure projected for the fiscal year 2026 budget.
Despite requests for further clarification on how the agency plans to sustain its housing programs amid the possibility of deeper cuts, Atlanta Housing has not provided specific answers. Lee was also unavailable for an interview at the time of the inquiry. Agency spokesperson Carolyn A. Smith described the budget as a reflection of a fiscally responsible approach, noting that it allows the authority to reduce overall spending while still aiming to keep people in stable housing.
Additionally, the budget outlines the agency’s goal to improve usage rates for housing vouchers, aiming for a 90% utilization rate for low-income families. The progress since 2015 has been notable, although rising rental costs and a tight housing market remain challenges. As of April 30, 2025, the voucher utilization rate stood at 82%, indicating ongoing struggles for low-income residents seeking affordable housing.
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