Proposed HUD Cuts Could Deepen Native American Housing Crisis, Experts Warn

May 12, 2025

WASHINGTON — Housing experts and tribal leaders are raising alarm over President Donald Trump’s 2025 budget proposal, which includes steep cuts to federal grants that support housing development in Indian Country.

The budget proposes a $280 million reduction to the Indian Housing Block Grant (IHBG)—the primary source of housing funds for tribal nations—and eliminates the Indian Community Development Block Grant (ICDBG) program entirely. Together, the programs fund affordable housing construction, infrastructure development, and repairs in Native communities across the U.S.

“These cuts would devastate our efforts to provide safe housing,” said Adrian Stevens, executive director of the Intertribal Housing Alliance. “We’re already facing a crisis. This would push us over the edge.”

According to the U.S. Department of Housing and Urban Development (HUD), tribal communities suffer from some of the worst housing conditions in the country, with overcrowding rates nearly eight times the national average and thousands of homes lacking basic plumbing or kitchen facilities.

While the administration argues the cuts are necessary to curb federal spending and focus on “more efficient” programs, advocates say tribal housing has been underfunded for decades and needs expansion, not reduction.

“We have a trust responsibility to Native nations,” said Cheryl Andrews-Maltais, chairwoman of the Wampanoag Tribe of Gay Head (Aquinnah). “This budget breaks that promise.”

Over 550 tribes rely on IHBG funds to construct new homes, modernize aging housing stock, and address homelessness on reservations. In many areas, the waiting list for housing can stretch years.

Housing officials warn that the proposed cuts could delay or cancel critical projects, increase construction costs, and worsen overcrowding.

Congress will review the proposed budget in the coming months. Tribal coalitions are urging lawmakers to reject the cuts and restore full funding for Native housing programs.

Photo: Homestead Community Development Corporation