The Department of Housing and Urban Development has proposed a rule that would let local housing authorities and private landlords impose strict time limits and work requirements on federal rental subsidies. Critics warn the change could jeopardize housing for millions of people amid high rents and growing homelessness.
Under the proposal, authorities and owners could set limits as short as two years and require up to 40 hours of work weekly for voucher recipients. People who are elderly or have disabilities would be exempt — a group that makes up the majority of federal subsidy recipients.
President Trump’s 2025 budget had included a two-year cap and a 40% cut to rental aid, but Congress rejected those proposals. This regulatory change would bypass Congress if finalized. Housing Secretary Scott Turner has said his goal is to move tenants off federal aid and toward self-sufficiency; last year he and other cabinet members urged broader work requirements for safety-net programs in an opinion piece.
About 9 million people receive federal housing assistance. With rents unaffordable for many Americans, opponents say imposing time limits and work rules would be harmful. Deborah Thrope of the National Housing Law Project called the plan “based on false and harmful stereotypes,” saying most able-bodied participants already work and that saving enough to leave assistance takes time and supports.
Supporters argue rental aid is not an entitlement and is scarce, so time limits could expand access by cycling recipients off assistance and allowing others to get help. Howard Husock of the American Enterprise Institute said many who qualify do not receive aid because limited resources are tied up, and that time limits might encourage upward mobility — but only if paired with policies like fixed rents and automatic savings accounts to help families build stability.
Some local experiments have shown mixed results. About 3,300 local public agencies administer federal housing assistance, but only roughly 140 have flexibility to test approaches like term limits and work requirements, and only a few dozen have done so. Delaware’s program, which typically limits assistance to five to seven years (with exceptions), is often cited as a success story when paired with supports.
Other examples have been less promising. Joshua Meehan of the Moving to Work Collaborative said hard term limits have not consistently produced the intended outcomes. Keene Housing in New Hampshire abandoned a five-year cap after seeing that many families’ incomes had not risen sufficiently by the deadline, likely meaning they would rejoin waiting lists.
It’s unclear how many housing authorities would adopt strict rules even if the federal change takes effect. Forcing frequent turnover could also unsettle private landlords who accept vouchers. The proposed rule is slated for publication and will be open for 60 days of public comment.