Federal Government Reopens After Longest Shutdown on Record
Legislation restores vital housing and community development resources, reinstates critical CDFI Fund and HUD staff
Today, President Trump signed government funding legislation that reopened the federal government after a 43-day shutdown, the longest government shutdown on record. The bill is the result of bipartisan negotiations in the Senate, where eight Democrats joined 52 Republicans to pass the legislation on Monday night. The House quickly returned to Washington, D.C. and passed the legislation today by a vote of 222 to 209.
What Is In the Funding Legislation?
The final legislation includes:
Full Fiscal Year (FY) 2026 funding for three of the 12 appropriations bills: Military Construction-VA, Agriculture, and Legislative Branch appropriations; and
Continuous funding for all remaining agencies and programs (including the Department of Housing and Urban Development (HUD) and the CDFI Fund) at FY 2025 levels through January 30, 2026, giving Congress additional time to pass legislation to fund these agencies for the rest of the fiscal year.
In addition to funding, the bill reinstates all federal employees who received termination notices as part of a Reduction in Force (RIF) during the shutdown, including the full staff of the CDFI Fund and hundreds of HUD employees. Those employees are returned to their employment status as of September 30, 2025, and are considered to have been employed without interruption and will receive all back pay they would have earned during the shutdown. The bill requires agencies to provide notice to these employees within five days that their RIF notice is withdrawn and of the amount of back pay they will receive. Further, the legislation prohibits any additional RIFs of federal employees through January 30, 2026.
Finally, the law also states that funds are provided for backpay to all federal employees and states that those payments shall be made, consistent with current law. Together, these provisions provide certainty to thousands of federal employees who worked without pay, were furloughed, or received termination notices during the record shutdown.
“The Federal government is an essential partner in housing and community development across the country. When agencies are shuttered, it can turn families’ lives upside down, disrupt development and preservation of critical affordable housing, and make it even harder for mission-focused organizations, like CDFIs, to serve families and small businesses in underserved rural, Tribal, and low-income areas across the country,” said Sarah Brundage, President and CEO of the National Association of Affordable Housing Lenders (NAAHL). “This legislation will bring relief to millions of families and communities and get the creation of desperately needed housing supply back on track. NAAHL applauds Congress for reinstating vital CDFI Fund and HUD staff, ensuring that these staff can continue to support economic opportunity across the country.”
In the policy brief Essential Funding for Essential Housing, NAAHL and the Center for Affordable Housing Lending outlined the ways disruptions to federal funding can imperil affordable housing deals. NAAHL also wrote to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russ Vought and joined with other banking trades highlighting the critical role CDFI Fund staff play in supporting financial opportunity and economic growth.
As Congress works to provide full fiscal year funding for HUD and the CDFI Fund, NAAHL will continue to advocate for the necessary resources and staffing to ensure that these agencies can fulfill their mission to support housing and economic opportunity for families in every community.