The One Big Beautiful Bill. Or Is It?
The federal bill now in the U.S. Senate and President Trump's 2026 budget proposal will have a serious impact on affordable housing in Vermont and Hinesburg if it is passed.
By The Hinesburg Affordable Housing Committee
For The Record
President Trump has proposed a tax and spending bill known as “The One Big Beautiful Bill (H.R. 1) which he says will deliver on campaign promises, create jobs and cut taxes. The bill's key components include permanently extending the 2017 Trump tax cuts, implementing work requirements for some federal benefits and increasing defense spending. It also aims to save money through changes to mandatory spending programs. The U.S. House has passed the legislation, and it is now being considered by the U.S. Senate.
The Bill is definitely BIG. Various analyses find the bill may increase the U.S. Debt by at least $2.5 billion over the next 10 years as it grants tax reductions to the ultra wealthy and corporations. While the bill might include some components that Vermont voters would support, considering the continuing housing crisis facing the United States, Vermont and Hinesburg, this bill is more bad than big.
The bill proposes major cuts to vital affordable housing, homelessness, and community development programs, and imposes changes to rental and homelessness assistance that would leave more families struggling to afford rent, and at increased risk of homelessness.
The HAHC has written news articles since January 2024 that highlight the housing needs in Hinesburg along with information on various housing programs and Hinesburg projects. This bill — and President Trump’s FY2026 budget proposal — will have a negative impact on housing, especially affordable housing. And it will have a negative impact on the programs that have brought some affordable housing to Hinesburg.
The following programs are absolutely critical major funding sources for Vermont, and according to the National Low Income Housing Coalition, their funding is being zeroed out under the President’s overall budget plan. (HUD is the Federal Department of Housing and Urban Development and HHS is the Federal Department of Health and Human Services.)
HUD’s Community Development Block Grant (CDBG) program
HUD’s HOME Investment Partnership (HOME) program
HUD’s Fair Housing Initiatives Program
HHS’s Low Income Home Energy Assistance Program (LIHEAP)
CDBG is a 50-year-old program; HOME is a 35-year-old program, and the loss of just these two funding sources would be devastating to Hinesburg and all Vermont communities wanting to bring perpetually affordable housing into their housing mix.
They have been key funding sources for almost every affordable housing project developed in Vermont during their existence. Hinesburg’s 2016 Green Street project budget included $675,000 in CDBG funds and $575,000 in HOME funds, the 2016 and 2025 Kelley’s Field projects budgets included $775,000 in CDBG funds, and they could not have happened without those funding sources. The proposed Riggs Meadow project budget is dependent on $850,000 in CDBG funds and $669,100 in HOME funding to move forward. These projects demonstrate the importance of these federal funding sources.
The HAHC would be remiss to not also lament the potential loss of the LIHEAP funding since it is so closely linked to housing affordability. This program helps low-income households afford their home energy costs, provides emergency assistance for utility shutoffs, and funds weatherization and energy efficiency upgrades. Many Vermont families, including Hinesburg families, have utilized this important funding to get through our cold Vermont winters.
The housing crisis in Vermont is real. From Governor Scott down to the young family trying to rent an apartment or buy their first home, they all agree the crisis exists and something must be done. While the HAHC sees the need for more funding to be a key part of a solution, there are some who might say otherwise. However, for Vermonters wanting to see the housing crisis addressed, very few, if any, would say this is the time to slash funding to zero out these absolutely critical funding sources.
The HAHC is certain Senators Sanders and Welch do not support these cuts, and our committee hopes the U.S. Senate will follow suit and restore these housing funds to the Bill and FY2026 Federal Budget.
NOTE: The One Big Beautiful Bill and the President’s Budget include way more than just the housing cuts described in this article. Become informed on what the Bill means to you, your family, neighbors and community. Just google the Big Beautiful Bill.