Last week, HUD issued a proposed rule to require all applicants and recipients of HUD-assisted housing to verify U.S. citizenship or eligible immigration status.

  • In Context: In September 2025, ProPublica leaked a proposed “mixed-status rule,” that we covered in our October 3 edition.
  • What Else is New: The proposed rule implements new verification requirements and forms while limiting prorated assistance to a temporary 30-day period while eligibility is verified for all household members.
  • Go Deeper: Owners would need to collect and verify documentation of U.S. citizenship or eligible immigration status for every household member:
    • Within 90 days for mixed-status households without current documentation; or
    • At next annual or interim certification for all other households missing documentation.
    • This change removes previous exemptions for some seniors or “do not contend” residents.
  • Go Even Deeper: Immigration status is verified through the Systematic Alien Verification for Entitlements (SAVE) system, administered by DHS, which is now on day 12 of a shutdown amid a funding impasse in Congress.

Why This Matters: Currently, mixed-status families may live in subsidized housing, but assistance is prorated to cover only eligible individuals. Tenants with mixed-status families will have to choose between HUD-assisted housing and living together as a family unit.

Déjà vu: The Trump Administration’s 2019 proposed rule was never finalized and was formally withdrawn by HUD in 2021 after the change in administration.

By The Numbers:

  • HUD estimates 24,000 “illegal aliens, ineligibles, and fraudsters” in 20,000 “mixed status households” receive HUD assistance.
  • A recent HUD and DHS audit of all assisted households identified nearly 200,000 tenants with incomplete or unknown eligibility verification.
  • In a Washington Post op-ed, HUD Secretary Turner said the department expects the proposed rule, once implemented, could redirect $218 million in federal spending away from ineligible residents.
    • Yes, but: The $218 million in redirected funding would serve fewer households since the funding would no longer be prorated.

HUD asserts these changes to Section 214 regulations will better align with the current Administration’s regulatory reform efforts and priorities outlined in President Trump’s Executive Order 14218, “Ending Taxpayer Subsidization of Open Borders.”

Resources:

The Center on Budget and Policy Priorities resource tracks national demographic data on who would be subject to the proposed rule’s new documentation requirements, those barred from rental assistance by a prohibition on mixed-status households, and the number of households and individuals, by state, who would be subject to the proposed changes.

Stewards of Affordable Housing for the Future (SAHF) developed a guide to help affordable housing providers strengthen their readiness and response to the requirements. The guide is organized into three focus areas:

  • Understanding Requirements and Resources
  • Developing or Updating Policies and Response Plans
  • Communicating with Front-Line Staff and Engaging Residents

Public comment is open until April 21, 2026.