A proposed rule from the Department of Housing and Urban Development would allow local housing authorities and private landlords to impose strict time limits and work requirements on federal rental subsidies, a change critics say could put millions at risk amid high housing costs and rising homelessness. The rule, posted for public inspection, would let jurisdictions set term limits as short as two years and require up to 40 hours of work per week. Elderly and disabled recipients—who make up a majority of federal rental-aid participants—would be exempt.
President Trump’s 2025 White House budget had included a two-year limit and a 40% cut to rental aid, which Congress rejected. If finalized, the HUD rule would implement similar policies without new congressional legislation. Housing Secretary Scott Turner has repeatedly said his goal is to promote self-sufficiency and wean tenants off federal aid; last year he and three other Cabinet members urged Congress to expand work requirements across safety-net programs, arguing some benefits go to able-bodied adults who do not work.
About 9 million people in the U.S. receive federal housing assistance. Critics, including the National Housing Law Project, argue the proposal rests on false assumptions and ignores that most able-bodied program participants already work; they warn that building savings and moving off assistance typically takes time and supportive services. The Center on Budget and Policy Priorities and others estimate time limits could jeopardize rental aid for millions.
Supporters say rental assistance is not an entitlement and demand far exceeds supply, so time limits could allow more people to access help. Howard Husock of the American Enterprise Institute said limits could spread scarce resources and encourage upward mobility if paired with supports such as fixed rents and automatic savings accounts to help families accumulate assets. Delaware’s housing authority has piloted a 5–7 year limit with some flexibility and accompanying savings mechanisms.
The evidence on outcomes is mixed. About 3,300 local public agencies administer federal housing; roughly 140 currently have the flexibility to try policies like time limits and work requirements, and only a few dozen have done so. Joshua Meehan of the Moving to Work Collaborative said hard term limits have not consistently produced desired income gains and noted agencies that abandoned five-year limits found participants hadn’t raised incomes sufficiently and likely would return to waiting lists.
It’s uncertain how many housing authorities would adopt the new option if it becomes available, and scholars warn that forcing recurring turnover could unsettle private landlords who accept vouchers. The proposed rule is scheduled for publication and will be open for a 60-day public comment period.