2026 Budget Proposal Cuts Historic Preservation Fund

The Federal programs that administer, support, and fund historic preservation and community development are threatened by cuts that are proposed or in progress in Washington, DC. Here’s what you need to know about the situation and how you can take action to support preservation funding and programs.

Drastic budget cuts are proposed to the Historic Preservation Fund (HPF) for the upcoming fiscal year. Funded by offshore oil and gas leases – not by taxpayer dollars – the HPF is managed by National Park Service (NPS) in the U.S. Department of the Interior. These cuts will have real impacts to the people employed in preservation-related jobs – from program administrators to construction workers – and to the historic places that contribute to the cultural heritage and economic vitality of our local communities.

The HPF contributes most of the annual budget for the State Historic Preservation Office (SHPO) in the Minnesota Department of Administration, matched in part by state funds. The SHPO is responsible for reviewing and approving applications for historic tax credits and National Register listings and administering environmental reviews for state and federal projects that impact historic and archeological resources.

Cuts to the HPF will cause costly delays for historic tax credit project reviews; these projects don’t pencil without these incentives, and they are already especially difficult because of current high interest rates and economic uncertainty. Overburdened SHPO staff also will not be able to provide timely reviews for complicated federal undertakings such as housing, transportation, highway infrastructure, broadband, and energy projects.

The HPF also directly supports competitive grant programs administered by NPS, including one that Rethos is currently administering. Through this grant, Rethos is distributing $600,000 in pass-through funds to help small towns in rural Minnesota revitalize historic downtown buildings—specifically underused upper floors in Main Street districts. These funds will be matched many times over by private dollars, earning dividends for local communities by contributing to the tax base and enhancing commercial district vitality by helping local contractors and small-town developers create jobs, housing, and small business spaces. While Rethos’ grant is not directly threatened at this time, we have been expecting that we will be eligible to apply for additional funds after the successful completion of this project. Future opportunities like this will be abruptly halted if the HPF is zeroed out in Fiscal Year 2026, as President Trump has proposed.

2025 Preservation Funds STILL Not Distributed

In addition to the cuts proposed, the FY 25 allocation of HPF funds that was appropriated by Congress has not been released to State Historic Preservation Offices. SHPOs in other states have already had to terminate staff or eliminate programs to manage their budgets. Although Minnesota’s SHPO is not yet facing cuts, it is only a matter of time before these ongoing delayed payments cause budgetary hardship.

Other cuts are proposed to community and economic development programs that support a variety of local initiatives, from housing to small business development. Read more about those proposed cuts here.

The Historic Preservation Fund is the oil that greases the wheels of our nation’s preservation programs by funding State Historic Preservation Offices, Tribal Preservation Offices, and specific programs to support local preservation activity.

Reach Out to Congress

• Find Your Members of Congress

  Use this link to look up who represents you in the U.S. House and Senate.

• Call Their D.C. Office

  Refer to our info sheet for their office number in Washington, DC. Ask to speak with the staffer who works on budget or appropriations.

• Introduce Yourself

  Say your name, where you're from, and the name of your organization if you have one. Use your organization’s mission statement or a short “elevator pitch” to describe what you do or why preservation is important to you.

• Share Your Concern

  Say you’re worried about the President’s proposed budget cuts to the HPF and the delay in FY25 funds. Ask them to 1) help facilitate the immediate release of FY25 Historic Preservation Fund grants that have already been approved by Congress and 2) support necessary and robust funding for the Historic Preservation Fund in the FY26 Federal budget.

• Tell a Local Story

  Share how HPF support has helped your community – for example, through a historic tax credit rehabilitation project that has created housing, a National Register listing that has honored a special place, or the work of your local Heritage Preservation Commission. A real story from your town or city is powerful.

• Say Thank You

  Thank the staffer for their time and their service.