Community leaders and housing advocates in Minnesota are raising alarms over proposed federal budget cuts that could drastically reduce rental assistance for thousands of residents.
At a recent roundtable hosted by the American Indian Community Housing Organization in Duluth, participants discussed the potential harm these cuts could cause, especially for families who depend on federal housing aid to keep a roof over their heads.
In 2023, Minnesota received $782 million in federal rental support. Local leaders say this funding is critical for about 100,000 people across the state who rely on it to avoid homelessness. But under the new proposals, that funding could be slashed, putting families at risk.
For people like Shylah Johnson, federal housing assistance has been life-changing. Johnson shared her personal story at the meeting, explaining that she once faced homelessness. With rental support, she has been able to secure stable housing for herself and her young son.
“I go to school and work multiple jobs, so I can be the best mom I can for my son,” Johnson said. “Having the assistance has definitely helped me do that. I’m grateful for it.”
Her story is far from unique. According to the Duluth Housing and Redevelopment Authority (HRA), demand for rental assistance in the region has surged in recent years. The HRA currently has about 4,000 people on its waiting list for support.
The situation has grown so urgent that, for the first time in more than a decade, the Duluth HRA was forced to close the waiting list. This means that even more families in need may be left without help.
The proposed cuts are part of a broader plan by former President Donald Trump to reshape the role of the Department of Housing and Urban Development (HUD). One of the changes under consideration would impose a two-year limit on federal rental assistance programs.
Housing advocates say such a move would be devastating. For many low-income families, the path to financial stability takes far longer than two years. They argue that housing security is often the foundation that allows people to find steady work, complete their education, and improve their lives.
Local leaders at the roundtable stressed that losing federal support would not only increase homelessness but also strain other community services. Emergency shelters, food banks, and healthcare providers could see more demand as families struggle without stable housing.
The Impact of Losing Housing Assistance
Housing experts warn that cutting rental assistance would ripple across communities. Without stable housing, children are more likely to fall behind in school, adults face greater challenges finding and keeping jobs, and health problems often worsen.
Stable housing also benefits the broader community. When families can afford rent, they spend more on local goods and services, contributing to the local economy. On the other hand, homelessness and housing instability come with high social and economic costs.
A Call to Protect Funding
Advocates in Minnesota are urging federal lawmakers to protect — or even increase — rental assistance funding. They say it is far more cost-effective to help families keep their homes than to deal with the fallout of mass evictions and homelessness.
The Duluth Housing and Redevelopment Authority says the demand for assistance has never been higher. Closing the waiting list was not a decision they took lightly, but it reflects a growing crisis in affordable housing.
For now, families like Johnson’s can only hope that the funding they rely on will remain in place. “It’s given me the chance to work, study, and raise my son in a safe home,” she said. “I don’t know what we would do without it.”
As discussions continue in Washington, the stakes are high for tens of thousands of Minnesotans. The proposed cuts could determine whether they have a place to call home — or face life without one.
