HUD Housing Counseling Grants
(Housing Counseling)
Department of Housing and Urban DevelopmentHomebuyers and homeowners receiving counseling; 150+ Women's Business Centers
What This Program Does
HUD Housing Counseling Grants fund approved counseling agencies that help people navigate buying a home, avoiding foreclosure, managing rental issues, and handling reverse mortgages. The program has provided federal support for housing counseling since the 1970s and serves as a key resource for individuals making major financial decisions about housing.
Who Would Be Affected
The proposed cut would eliminate approximately $100 million in funding that supports a nationwide network of HUD-approved housing counseling agencies. These agencies serve homebuyers, current homeowners facing financial difficulty, and renters. The program also supports over 150 Women's Business Centers. Low- and moderate-income households, first-time homebuyers, and people at risk of foreclosure are among the primary populations that rely on these services.
What This Cut Would Mean
Without federal funding, many housing counseling agencies — particularly smaller nonprofits — could be forced to reduce services or close, leaving fewer free or low-cost counseling options available, especially in underserved communities. The administration argues that private and nonprofit organizations can fill the gap without federal subsidies. However, independent researchers and housing advocates have noted that HUD-funded counseling has been shown to reduce mortgage delinquency and foreclosure rates, and that the private market may not adequately serve low-income populations who benefit most from these services. The loss of funding could leave vulnerable homeowners and prospective buyers without guidance during complex financial transactions.
Administration's Stated Rationale
“Housing counseling market to be served by private and nonprofit organizations without federal subsidy.”