Jan 23

House Passes Legislation Funding HUD for FY 2026

Spending Bill Increases HUD Funding Overall, with Increased or Level Funding for Most Key Programs

Last night, the House of Representatives passed a package of three FY 2026 appropriations bills, including the Transportation-Housing and Urban Development (THUD). The FY 2026 THUD appropriations bill provides HUD with a total discretionary budget of $77.3 billion, an increase of over $7 billion for the agency from FY 2025 levels. It also includes level or increased funding for most key programs, including those used most commonly alongside the Housing Credit. 

Notably, the bill increases funding for Section 8 and maintains funding for the HOME Investment Partnerships Program.

The funding measures were previously negotiated on a bipartisan basis between leadership in both chambers of Congress, and are expected to be packaged with other appropriations bills and easily passed by the Senate next week ahead of the January 30 funding deadline. Once signed into law, these spending bills will fund all federal agencies through September 30, 2026.

Select measures from the FY 2026 THUD appropriations bill:

  • $38.439 billion for the Tenant-Based Rental Assistance Program, an increase from the FY 2025 enacted funding level of $36.04 billion.
  • $18.543 billion for Project-Based Rental Assistance, a $2.053 billion increase over the FY 2025 level.
  • $1.25 billion for the HOME program, maintaining level funding from FY 2025, after the program faced the prospect of elimination earlier in the appropriations process.
  • $3.3 billion for the Community Development Block Grant program, maintaining level funding from FY 2025.
  • $8.319 billion for the Public Housing Fund, which is $1 billion more than the House Republican bill, but down from the prior enacted level of close to $9 billion.
  • $4.4 billion for Homeless Assistance Grants, which fund Continuums of Care (CoC), a $366 million increase over FY 2025. Notably, the legislation also stipulates the timely renewal of CoC grants to these providers.
  • $25 million for the Choice Neighborhoods Initiative. This amount is $50 million less than the FY 2025 level.
  • $287 million for Section 811 Housing for Persons with Disabilities, a $30 million increase over FY 2025.
  • $529 million for Housing Opportunities for Persons with AIDS, a $24 million increase over FY 2025.
  • $296 million for the Office of Lead Hazard Control and Healthy Homes.
  • $158 million for Neighborhood Reinvestment Corporation (NeighborWorks).
  • $3 million for the U.S. Interagency Council on Homelessness.
  • $1.455 billion for salaries and expenses, reflecting a 24 percent reduction in HUD staffing.

View the FY 2026 Republican summary, the Democratic Summary, and full bill text.