A draft federal regulation published March 2, 2026, would let local housing agencies and property owners impose work mandates and time limits on millions of Americans who receive rental assistance, potentially cutting off help to 3.3 million people, including 1.7 million children.
The Department of Housing and Urban Development proposal would allow public housing agencies and owners of Project-Based Rental Assistance sites to require work-eligible adults to participate in work activities for up to 40 hours per week. It would also authorize time limits of at least two years for families who are neither elderly nor disabled and who receive assistance.
The wide-ranging changes would apply to Housing Choice Vouchers, Project-Based Rental Assistance, and other major federal housing programs that now serve more than 10 million people nationwide. Certain programs would be exempt from these requirements, including the HUD-VASH program, the Family Unification Program, and the Foster Youth to Independence Program.
Under the proposed rule, work-eligible people are defined as those aged 18 to 61. Housing agencies and property owners would have the authority to craft their own policies, including setting required weekly work hours and deciding whether requirements apply to individuals or entire households.
“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 their analysis of the proposal.
The Center on Budget and Policy Priorities examined the possible effects of a two-year time limit across public housing, Housing Choice Vouchers, and Project-Based Rental Assistance programs.
Housing providers that adopt these policies could end assistance for families or individual family members who do not meet work requirements or exceed time limits.
HUD estimates roughly 750 public housing agencies and 3,504 property owners will implement work requirement 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 said it strongly opposes the proposal and will advise members on submitting comments.
The proposal comes as federal rental assistance faces growing pressures. More than five million households rely on Section 8 assistance to help cover rent in high-cost markets like Los Angeles, New York City, and Seattle. In Los Angeles County alone, about 85,000 households receive subsidies through these programs.
Even with the current scale of aid, only about a quarter of eligible households can access federal rental programs because of inadequate funding. This shortfall has long hampered advocates seeking to expand access to these crucial supports.
The work requirements and time limits proposal is one element of broader federal housing policy changes. In February, HUD proposed separate rule changes on eligibility. Another proposal would bar families with undocumented members from receiving housing assistance, potentially affecting 20,000 households.
Secretary of Housing and Urban Development Scott Turner has said the administration views time limits and work requirements as tools to encourage self-sufficiency among able-bodied residents. The approach signals a shift in how HUD positions its role in rental assistance programs.
Congress has also debated changes to housing assistance funding. A House plan would fund Section 8 at 2025 levels with no increases for rising rents, which could reduce the number of people receiving vouchers by 400,000. A Senate plan would allocate more than the House but still not enough to preserve current coverage, potentially cutting assistance for 250,000 people. President Trump previously proposed cutting the program’s funding by 40-44 percent.
The competing plans reflect continuing debate over the size and design of federal housing assistance.
Federal rental assistance programs primarily serve families with children, older adults, people with disabilities, full-time caregivers, and low-wage workers. The aid helps these households afford rent and frees income for essentials like food, medical care, transportation, and school supplies.
Research on similar requirements in other assistance programs shows worrying trends. Claudia Aiken of the New York University Furman Center noted that work requirements in food assistance, Medicaid, and cash welfare have sharply reduced participation. Studies indicate that administrative burdens and reporting rules often block access even for people who meet the work standards.
Housing advocates from groups including the National Housing Law Project warn the proposed changes could increase evictions and homelessness and disproportionately harm people of color. “The administration is gutting the federal housing programs,” said Deborah Thrope of the National Housing Law Project.
Although the HUD-VASH program for veterans is categorically excluded from both work requirements and time limits, the proposal provides fewer exemptions for time limits than it does for work requirements.
