To start, the proposed rule by the Department of Housing and Urban Development would introduce strict time limits and work requirements as conditions for rental subsidies. Critics argue that this move could jeopardize millions of people who rely on such aid, especially given the current surge in housing costs and homelessness.
The implementation of these new restrictions would be left to local housing authorities and private property owners who rent to individuals using a housing voucher, commonly known as Section 8. Time limits could be as brief as two years, with work requirements possibly reaching up to 40 hours per week. However, individuals who are elderly or disabled, which make up a majority of those with federal rental subsidies, would be exempt from these regulations.
President Trump had previously suggested a two-year limit in his White House budget, along with a proposed 40% reduction in rental aid. Congress ultimately rejected these proposals. The new rule, if finalized, would bypass Congress altogether.
Housing Secretary Scott Turner has frequently expressed his desire to assist tenants in transitioning away from federal aid and towards self-sufficiency. He, along with three other Cabinet members, co-authored a New York Times opinion piece last year urging Congress to expand work requirements across various safety net programs. Their argument was centered around the belief that a growing portion of public benefits are not reaching the truly needy, but rather able-bodied individuals who are not actively employed.
Approximately 9 million individuals in the United States receive federal housing assistance, yet the cost of rent remains unaffordable for a significant portion of the population.
“This proposal is based on false and harmful stereotypes, rather than concrete data or best practices,” remarked Deborah Thrope, deputy director at the National Housing Law Project. She emphasized that most participants in federal housing programs who are capable of working are already employed. Transitioning off assistance, she added, requires substantial time and support.
The argument in favor of time limits on housing subsidies is rooted in the notion that rental assistance is not an entitlement, and the demand far exceeds the available funds. Supporters suggest that time limits could help distribute limited rental aid to a larger number of individuals.
Howard Husock, a senior fellow at the American Enterprise Institute, mentioned that a significant number of individuals who qualify for housing aid do not receive it, leading to an inefficient use of available housing resources. He suggested that time limits could potentially encourage upward mobility, emphasizing the importance of accompanying measures such as fixed rent and automatic savings accounts to facilitate financial progress as incomes increase.
The track record for time limits on housing subsidies varies across different agencies. While some have successfully implemented such programs, others have faced challenges. It remains uncertain whether a substantial number of housing authorities would opt to adopt these new restrictions, as the potential repercussions of forcing millions of individuals to relinquish their subsidies every few years could also impact private landlords who cater to voucher holders.
The proposed rule is set to be published on Monday and will be open for public comment for a 60-day period.
