Proposed Federal Housing Cuts Could Hit Rural East Texas Hard

Illustration created by Rita Shipp, East Texas Banner — Representing modest rural housing similar to what is found across East Texas, where affordable housing programs like HOME play a critical role.

Jasper County, Texas — A national budget battle brewing in Washington could have ripple effects across rural East Texas, where affordable housing is already a challenge.

The HOME Investment Partnerships Program, a federal grant initiative that has funded more than 1.3 million affordable homes nationwide since the 1990s, is on the chopping block in President Donald Trump’s budget proposal. House Republicans left the program out of their draft budget, though Senate Republicans have signaled support to continue it. The program’s future is now caught in negotiations.

For rural communities like Jasper, Newton, and Tyler counties, the outcome could be significant. HOME grants help fill funding gaps for building or repairing affordable homes — particularly in areas where private developers are unlikely to invest. According to federal data, nearly half a million homes built with HOME assistance over the past three decades were in rural districts, many of them in counties facing persistent poverty.

Local housing experts say losing the program wouldn’t cause an immediate crisis but would shrink the pipeline of affordable housing in the years to come. Without the grants, fewer homes could be built or repaired, making it harder for working families, seniors, and single parents to find housing they can afford.

HOME is also often paired with the Low-Income Housing Tax Credit, the nation’s largest affordable rental housing program. Without HOME funding, those credits are less effective, limiting development in smaller rural markets.

Affordable housing is already a challenge across East Texas, where rising costs and limited supply leave many families struggling. Federal programs like HOME have long been one of the few resources available for rural counties.

As Congress debates the budget, the future of this program — and the housing opportunities it provides — remains uncertain. For communities like ours, the decision could shape whether new affordable housing continues to be built in the years ahead.

For More Information

To learn more about the HOME Investment Partnerships Program and its impact on affordable housing, visit HUD’s official program page

or the Texas Department of Housing and Community Affairs.