In short
Last month, the Trump administration released the President’s FY2027 Budget Proposal, initiating the federal appropriations process. The President’s budget is a statement of policy priorities – not enacted law. Congress retains full authority over spending and will shape final funding levels through hearings, markups, and negotiations ahead of the September 30 deadline. Notably, the FY2027 proposal largely mirrors the administration’s FY2026 submission, reflecting continuity in the President’s policy direction rather than a predetermined outcome.
On April 3, 2026, the Trump administration submitted the President’s FY2027 Budget Proposal to Congress. The proposal underscores the President’s continued emphasis on consolidating social policy initiatives, shifting greater responsibility for program funding to state and local governments, and reducing federal administrative infrastructure. While there are limited increases in select areas, these proposals – if enacted – would create a more constrained funding environment for agencies and nonprofits that rely on federal resources.
The proposal reflects the President’s continued push toward a contraction in federal programs that, if adopted by Congress, could have compounding effects on low-income, rural, and historically underserved populations. Of primary concern to nonprofits are the potential implications for housing, food access, education, and health systems. The table below highlights key proposed changes most relevant to organizations operating in or adjacent to the sector.
A proposed $4 billion reduction at the Department of Housing and Urban Development (HUD) underscores the President’s continued desire to scale back federal investment in homelessness response and affordable housing initiatives. While Housing Choice Vouchers would receive a modest increase under this proposal, programs such as Emergency Housing Vouchers, Homeless Assistance Grants (including Continuum of Care), and major community development programs like CDBG and HOME are proposed for elimination. Combined, CDBG and HOME programs have delivered nearly $250 million to Georgia communities over the past decade.
The President’s proposal also includes a 60-month limit on federal housing assistance and the introduction of public housing work requirements for individuals aged 18–62 (with some exceptions). In addition, the proposal would shift adult and technical education programs to the Department of Labor, alongside a proposed $3.5 billion reduction to that agency and the proposed elimination of programs such as Job Corps and Senior Community Service Employment. If enacted, these changes would represent a significant restructuring of workforce and education systems.
The President’s budget further proposes a $2.3 billion reduction to the Department of Education. While Pell Grants would receive a significant increase in discretionary funding, more than 17 programs – primarily serving homeless youth, rural communities, English language learners, migrant students, and family engagement initiatives – are proposed for consolidation or elimination.
At the Department of Health and Human Services, the President proposes $15.8 billion in reductions. These include proposed cuts to community health centers (totalling $3.5 billion), reductions in mental health funding, and the proposed elimination of multiple CDC programs – including the Prevention and Public Health Fund. The proposal also calls for eliminating the Community Services Block Grant (CSBG), which currently supports millions of low-income households through wraparound services such as housing, food access, and transportation. If enacted, these changes would significantly alter the landscape of community-based health and human services.
Amidst proposed reductions in Justice Department grant programs, the request also seeks to eliminate the Legal Services Corporation (LSC), the independent organization established by Congress to fund civil legal aid for low-income Americans through local nonprofits. The proposal provides just $21 million to wind down LSC operations.
Beyond human services, the President’s proposal includes approximately $807 million in reductions to arts and humanities funding and proposes eliminating three of four major arts education programs. It also calls for the elimination of agencies such as the National Endowment for the Arts and the National Endowment for the Humanities. Under the proposal, programs like Assistance for Arts Education and National Capital Arts and Cultural Affairs would be eliminated. Over the past five years, the NEA alone has distributed more than $38 million to partners in Georgia, contributing to a broader economic impact of $31.2 billion in 2023.
It is important to underscore that Congress has final authority over all federal spending decisions. The FY2026 appropriations and reconciliation processes demonstrated bipartisan willingness to modify or reject proposed reductions in key areas. At the same time, the administration has continued to advance these priorities through executive actions and administrative decisions, contributing to ongoing uncertainty for nonprofits and the communities they serve.
GCN will continue to monitor developments as the U.S. House and Senate move through the FY2027 appropriations process (see chart below). At the bottom of this page, find a rundown of key funding changes proposed for FY2027. GCN will keep members and stakeholders informed of key updates and potential implications as negotiations unfold.
| Time Frame | What’s happening |
| Now – end of May | Hearings, early drafting |
| May – July | Markups, bill-writing |
| August – September | Floor / negotiations |
| September 30 | Funding deadline |
| October – December (likely) | CR or omnibus |
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Key Changes in the President’s FY2027 Budget Proposal
Department of Agriculture
$4.9 billion reduction from 2026 enacted, including a $5.6 billion cut to rural housing initiatives and zeroing out the Rural Development Loan Fund and Multi-Family Housing Voucher Program. The 2027 proposal also maintains funding TEFAP and Farmers Market Nutrition Program at current levels.
Among proposed changes:
| +$100M | Multi-Family Housing |
| -$17M | Direct Loans, Section 502 Single Family Housing |
| -$5B | Guaranteed Housing Loans |
| -$80M | Section 521 Rental Assistance |
| -$6.2B | SNAP |
| -$200M | WIC |
Department of Education
$2.3 billion reduction from 2026 enacted, including staff reductions. Proposed key department changes include both consolidation of programs as well as transferring programs to other agencies, including the 21st Century Community Learning Centers, Education for Homeless Children and Youth, Rural Education Achievement, state assessments, and Statement Family Engagement Centers. The proposal also moves the Office of Career, Technical, and Adult Education programs to the Department of Labor, zeroing out funding for adult education initiatives.
Among proposed changes:
| +$10.5B | Discretionary Pell Grant Funding |
| +$2B | Block Grant, “Make Education Great Again” |
| +$539M | IDEA, but eliminates IDEA preschool grants |
| +$500M | Charter Schools |
Department of Health and Human Services
$15.8 billion reduction from 2026 enacted, with proposed shifts of resources to AHA (Administration for a Healthy America). The proposal singles out dozens of public health programs for elimination, including initiatives addressing chronic disease, adverse childhood experiences, drowning, elderly falls, school health, oral health, and injury prevention. Also at risk are the CSBG (assisting 5 million low-income families) and LIHEAP (helping 6 million households with young children, seniors, and disabilities pay heating/cooling bills), which provide services to prevent negative health outcomes in low-income households.
Among proposed changes:
| -$3.5B | Community Health Centers |
| -$26.7B | Mental Health Funding |
| -$3B | Prevention and Public Health Fund (eliminated) |
| -$1.4B | Centers for Medicare & Medicaid Services |
Department of Housing and Urban Development (HUD)
$4 billion decrease from 2026 enacted. The proposed budget maintains funding at existing levels for public housing operation and capital. However, the cuts to grant programs eliminate the Continuum of Care, Permanent Supportive Housing, the Youth Homelessness Demonstration Program, the National Homeless Data Analysis Project, the CDBG program, HOME Investment Partnerships, the Choice Neighborhoods initiative, the Housing Opportunities for Persons with AIDS Program, and the Community Development Financial Institutions Fund, along with the Fair Housing Initiatives Program, Eviction Protection Grants, Housing Counseling, and all HUD self sufficiency programs (ROSS, Jobs Plus, Family Self-Sufficiency). Additionally, the budget proposes a 60-month limit on federal housing assistance and work requirements on public housing for anyone ages 18-62 across all programs, with exceptions for disabled, veteran, student, and Medicaid/SNAP exempt individuals.
Among proposed changes:
| +$608M | Housing Choice Voucher (HCV) |
| +$4B | Emergency Solutions Grant program expansion |
| +$115M | HCV Administration Fees |
| -$90M | Section 8 Housing |
| -$393M | Homeless Assistance Grants |
Department of Justice
$4.7B increase from 2026 enacted. Consolidates the Office of Community Oriented Policing, Office of Justice, and Office of Violence Against Women into the Bureau of Justice Grants. Proposes a continued expansion of surveillance tech across cities.
Among proposed changes:
| -$537.9M | Byrne Discretionary Community Project Grants (eliminated) |
| -$65M | Juvenile Justice Programs |
| -$1.7B | State and local grants, including ~30 grant programs |
| -$519M | Legal Services Corporation (eliminated) Note: Relevant to Justice but not funded by any specific department. |
Department of Labor
$3.5B decrease from 2026 enacted. Proposes consolidating 12 workforce programs into one “Make America Skilled Again (MASA)” grant program, with 10% of funding focused on apprenticeship activities. Job Corps, the Senior Community Service Employment Program, and the Women’s Bureau are proposed for elimination, while a new AI and Data Analytics program would be established.
Among proposed changes:
| +1.45B | Office of Career, Technical, and Adult Education programs (moved from DOE) |
| +$35.4M | Office of Civil Rights establishment, consolidating various programs, including OSHA |