Proposed Federal Cuts Could Devastate Thousands Who Rely On Housing Assistance Programs

Here are the morning’s top stories on Wednesday, August 6, 2025…

• Federal housing cuts could leave thousands of California families without a place to live. And in Fresno County, where more than half of residents rent, the impact could be devastating.
• The Marine Corps has changed its longstanding agreement with an Oceanside-based credit union, following a KPBS investigation last year.  

Thousands of Californians Could Lose Rental Assistance Amid Federal Cuts

Raye Michelle Vang knows what it’s like to start over. The Fresno radio host and single mom of three says she wouldn’t be where she is today without the federal housing voucher she received nearly eight years ago. At the time, she was trying to leave an abusive relationship, raising two daughters, and pregnant with a third. “I just thought, you know, what am I going to do? Am I going to go homeless with three kids?” Vang said.

She applied for a voucher on a whim, expecting to wait years. Instead, she was approved in a year. It changed everything. Vang hosts a 2 hour daily show on Hmong Radio where she speaks “hmonglish.” She covers everything from parenting to voting in local elections. 

The voucher, which pays 30% of her rent, allowed her to focus on providing for her daughters’ needs–diapers, new clothes and being present. She started taking communications classes at Clovis City College, where she landed the radio hosting job. “I would have never even thought about trying this [radio show], because I would be working two to three jobs,” she said.

But now, Vang fears she and thousands of others could lose their safety net. Under pressure from the Trump administration, Congress is proposing sweeping cuts to the Department of Housing and Urban Development’s budget and programs. More than 900,000 Californians rely on federal housing assistance and only 1 in 4 eligible residents currently receive help, according to the California Budget & Policy Center. “If Congress doesn’t act, we could see tens of thousands of people, including seniors, people with disabilities, and working parents, pushed out of their homes,” said Monica Davalos, a housing policy analyst with the California Budget & Policy Center.

New Contract Between Marine Corps, Frontwave Credit Union Provides More Protections For Recruits

Marine recruits will now have more authority over their personal finances when heading to boot camp in San Diego.

A KPBS investigation last year revealed the Marine Corps has had an exclusive arrangement with Oceanside-based Frontwave Credit Union going back decades. The agreement funneled thousands of Marine recruits into the credit union every year in order to process their direct deposits during boot camp.

Marines and former Frontwave employees told KPBS that recruits were instructed to sign up for the accounts, which boosted the credit union’s membership numbers over time. KPBS’ investigation also revealed the credit union has relied on overdraft fees from Marines, their families and other customers as a key source of revenue.

The latest contract between the Marine Corps and Frontwave keeps the credit union as the on-base financial institution for the Marine Corps Recruit Depot near downtown San Diego. But the contract now explicitly states recruits can use the bank or credit union of their choice to receive their paychecks. The agreement also expands Frontwave’s obligations to provide financial education to Marines.