A proposed federal rule published March 2, 2026, would allow local housing agencies and property owners to impose work requirements and time limits on millions of Americans receiving rental assistance, potentially cutting off aid to 3.3 million people, including 1.7 million children.
The Department of Housing and Urban Development proposal would permit public housing agencies and owners of Project-Based Rental Assistance properties to require work-eligible adults to engage in work activities for up to 40 hours per week. The rule would also authorize time limits of at least two years for non-elderly, non-disabled families receiving assistance.
The sweeping changes would affect Housing Choice Vouchers, Project-Based Rental Assistance, and other major federal housing programs that currently serve more than 10 million people nationwide. However, the proposal excludes certain programs from the requirements, including the HUD-VASH program, the Family Unification Program, and the Foster Youth to Independence Program.
Under the proposed rule, work-eligible individuals are defined as those ages 18 to 61. Housing agencies and property owners would have discretion to design their own policies, including setting the number of required work hours and determining whether requirements apply at the individual or household level.
“If implemented, such policies are expected to have negative impacts on HUD-assisted households,” wrote Alayna Calabro and Renee Williams of the National Low Income Housing Coalition in an analysis of the proposal.
The Center on Budget and Policy Priorities analyzed the potential impact of a two-year time limit across public housing, Housing Choice Vouchers, and Project-Based Rental Assistance programs.
Housing providers adopting these policies could terminate assistance for families or individual family members who fail to comply with work requirements or exceed time limits.
HUD estimates approximately 750 public housing agencies and 3,504 property owners will adopt work requirements or time limit policies.
Public comments on the proposed rule are due by May 1, 2026, at 11:59 p.m. Eastern Time. The National Low Income Housing Coalition has announced it strongly opposes the proposal and will provide guidance to members on submitting comments.
The proposal comes as federal rental assistance faces mounting pressures. More than 5 million people rely on Section 8 housing assistance to help pay rent in expensive markets including Los Angeles, New York City, and Seattle. In Los Angeles County alone, approximately 85,000 households receive subsidies through these programs.
Despite the scale of current assistance, only about a quarter of eligible households can participate in federal rental programs due to insufficient funding. The shortage has long been a challenge for housing advocates seeking to expand access to these critical supports.
The work requirements and time limits proposal represents one component of broader changes to federal housing policy. In July, HUD proposed separate rule changes addressing eligibility requirements. Another proposal would bar families with undocumented members from receiving housing assistance, potentially affecting 20,000 households.
Scott Turner has indicated the administration views time limits and work requirements as tools to promote self-sufficiency among able-bodied residents. The approach marks a shift in how HUD frames its mission regarding rental assistance programs.
Congress has also considered changes to housing assistance funding. A House proposal would fund Section 8 at 2025 levels without increases for rising rents, potentially resulting in 400,000 fewer people receiving vouchers. A Senate proposal would provide more funding than the House version but still fall short of maintaining current service levels, potentially cutting assistance for 250,000 people. President Trump earlier proposed a 43 percent funding cut to the program.
A stopgap funding measure expires January 30, creating urgency around congressional budget decisions. The competing proposals reflect ongoing debates about the appropriate level and structure of federal housing assistance.
Federal rental assistance programs primarily serve families with children, older adults, people with disabilities, full-time caregivers, and workers with low wages. The assistance helps these households afford rent while freeing income for other necessities including food, medical care, transportation, and school supplies.
Researchers studying similar requirements in other assistance programs have found concerning patterns. Claudia Aiken of the New York University Furman Center noted that work requirements in food assistance, Medicaid, and welfare programs have drastically reduced program participation. The research suggests administrative burdens and reporting requirements often create barriers even for those who meet work standards.
Housing advocates from organizations including the National Housing Law Project warn the proposed changes could lead to increased evictions and homelessness, with people of color facing disproportionate risk. “The administration is gutting the federal housing programs,” said Deborah Thrope of the National Housing Law Project.
While the HUD-VASH program serving veterans receives categorical exclusion from both work requirements and time limits, the proposal takes a more limited approach to exemptions for time limits compared to work requirements.
