HUD Reintroduces Proposed Rule Targeting Rental Aid for Mixed-Status Immigrant Households

As the Trump administration continues to focus on the legal immigration statuses of many across the country, a revived proposal by the U.S. Department of Housing and Urban Development could impact many families’ ability to receive rental assistance.

A for-rent sign beckons tenants in Albuquerque, N.M. A proposed rule from the U.S. Department of Housing and Urban Development would affect mixed-status immigrant households that use Section 8 rental assistance. (Photo by Marisa Demarco/Source NM)

The proposed rule would prohibit “mixed-status” families  —  those including U.S. citizens and people without legal immigration status — from living in public and other subsidized housing. It would apply to HUD public housing, Section 8 rental assistance, and some housing development grants.

Current regulations allow mixed-status families to receive decreased assistance based on the number of household members with legal status. The proposed rule would limit that assistance to 30 days as HUD verifies family members’ legal status.

HUD Secretary Scott Turner has said the change could redirect $218 million to other qualifying families.

“The law is clear: Housing assistance must only go to eligible individuals. This requirement exists to protect the families and taxpayers who fund the nation’s welfare system. It draws a hard line,” Turner wrote last week in an opinion piece in the Washington Post. He wrote that some 24,000 people living in HUD-assisted housing are likely ineligible.

HUD’s own analyses from previous mixed-status rule discussions estimated there are about 25,000 mixed-status households living in HUD-assisted housing, fewer than 1% of all households receiving federal rental aid.

The proposed rule would update regulations barring HUD from providing assistance to individuals who are not U.S. citizens or do not have legal or eligible immigration status. Under this proposal, all assistance-eligible tenants and applicants under housing programs — regardless of age  — would need to verify their citizenship or status.

This proposal was initiated in 2019 under the first Trump administration, but was blocked. The rule would remove the existing “do not contend” option, end certain exemptions for older participants, and expand the use of Social Security numbers and the federal SAVE system for status verification. The SAVE system (Systematic Alien Verification for Entitlements) is run under the U.S. Department of Homeland Security and is also being used to help verify voter citizenship status and public benefits eligibility.

Nearly three-quarters of potentially affected households live in California, Texas, and New York, according to the left-leaning Center on Budget and Policy Priorities’ analysis of HUD administrative data. California accounts for the largest share of affected families, followed by Texas and New York. In these states, thousands of households that currently receive prorated rental assistance could lose eligibility entirely if the rule is finalized, rental housing advocates warn.

These states also have high housing costs in concert with long waiting lists for assistance. The policy would primarily affect families with children, many of whom are U.S. citizens, and could increase demand for emergency housing and other local safety-net services, advocates say.

The Center for Budget and Policy Priorities estimates 80,000 people could lose housing assistance, including an estimated 37,000 children, nearly all of whom are U.S. citizens.

The proposal is open for public comment through April 21.

Stateline reporter Robbie Sequeira can be reached at rsequeira@stateline.org.

by Robbie Sequeira, Virginia Mercury

Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis for questions: info@virginiamercury.com.