Understanding the Federal Funding Pause

Despite the federal funding pause, HUD’s Multifamily Project-Based Rental Assistance programs remain operational, ensuring uninterrupted support for property owners and tenants. This comes as a relief to many in the housing industry. This week, the Office of Management and Budget (OMB) issued guidance temporarily pausing certain federal grants, loans, and financial assistance programs. However, not all programs are affected by this directive.

The good news? HUD’s Multifamily Project-Based Rental Assistance (PBRA) programs will continue paying property owners and supporting tenants who rely on these subsidies.

Why Rental Assistance is Exempt

According to OMB’s guidance, any program that provides direct benefits to individuals is not subject to the federal funding pause. This includes critical programs such as:

• Social Security & Medicare
• Medicaid & SNAP (food assistance)
• Pell Grants & Head Start
• Rental Assistance Programs

HUD has confirmed with OMB that multifamily rental assistance payments will continue without disruption. Property owners participating in project-based Section 8 and similar HUD programs will still receive payments, ensuring continued housing stability for thousands of low-income households.

What This Means for Property Owners & Residents

If you are a property owner participating in HUD’s project-based rental assistance programs:

• Expect no disruption in subsidy payments.
• HUD will continue meeting its financial obligations.
• You can reassure your tenants that their rental assistance remains intact.

If you are a tenant receiving rental assistance through these programs:

• Your housing assistance remains fully funded.
• No changes are being made to your eligibility or benefits.
• Your rent calculations and payments to your landlord remain the same.

This ensures continued stability in affordable housing communities despite concerns about federal funding pause.

Addressing Concerns & Misinformation

With news of the funding pause, many property owners and residents feared the worst—potential delays in payments, uncertainty about lease agreements, and questions about whether affordable housing programs would be cut.

However, OMB’s Q&A document clarifies that the pause does not apply across the board. The goal is to review programs to ensure they align with the new administration’s policies, but essential services and benefits for Americans are not affected.

Rental assistance will continue without delay.

For further updates, stay connected with HUD and your local housing agency. If you have any concerns about your rental assistance payments, reach out to your HUD representative or property manager.

Please spread the word to clear up the confusion! Housing remains a priority.