Baldwin attacks Trump administration cuts for rural housing loans
Oct 05, 2026 | 6:12 pm ET
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U.S. Sen. Tammy Baldwin, shown here speaking at the Wisconsin Democratic Party convention in June, criticized the Trump administration Monday for spending half of what Congress has appropriated to help low-income rural residents afford housing. (Photo by Baylor Spears/Wisconsin Examiner)
The Trump administration has cut funding for a federal rural housing program in half nationwide and by 85% in Wisconsin, ignoring the $1 billion congressional appropriation for the program, Sen. Tammy Baldwin said Monday.
“The Trump administration has the money, but they are making an active choice not to use it and not to invest in rural America,” Baldwin said in a statement issued by her office.
At issue is funding for the U.S. Department of Agriculture Single Family Housing Direct Home Loans program. The program has typically provided financing for about 5,500 mortgages per year for low- and very-low-income residents in rural areas.
Congress rejected a Trump administration proposal to eliminate the program in 2026, according to Senate Appropriations Committee Democrats, and instead approved $1 billion for the program.
By the end of the 2026 fiscal year Sept. 30, however, the administration had spent $518 million. Of the remaining funds, $230 million expired with the end of the fiscal year, unable to be lent. Another $250 million of the appropriation can still be used in the new fiscal year.
Senate Democrats also stated that the Trump administration has added “harmful red tape” making loan applications harder.
A chart distributed by Baldwin’s office showed that while in past years Wisconsin accounted for an average of more than $13 million in loans annually, that plummeted to $1.98 million in 2026. Both Wisconsin and Connecticut had the steepest drop in loans compared with their past year averages — 85%.
“The price of housing is crushing families and is putting the dream of homeownership further and further out of reach,” Baldwin said. “Instead of helping these folks afford the roof over their heads, the Trump Administration is making matters worse by slashing resources that help working families in our rural communities afford a home.”
A USDA representative did not respond to a request for comment Monday afternoon about the funding cuts for the program.
Madison, WI
