FY 26 Appropriations Updates for Housing and Community Development
This week, the House and Senate Appropriations Committees both advanced bills to set funding for key housing and community development programs for the 2026 fiscal year.
FY26 Senate THUD Appropriations
On Thursday, July 24, the Senate Appropriations Committee voted to advance its Transportation, Housing and Urban Development, and Related Agencies (THUD) appropriations bill on a bipartisan 27-1 vote. The Senate bill provides $73.3 billion for HUD in FY26, above the House THUD bill’s $67.751 billion and significantly above the President’s budget proposal of $42.765 billion. Overall, the Senate included more funding for many HUD and related programs than was included in the House bill or the President’s budget. The Senate also included funding for key programs, like HOME, that were not funded in the House bill. Like the House THUD bill, the Senate did not adopt the President’s budget proposal to consolidate and block grant rental assistance programs.
Click here for a comparison of the Senate THUD appropriations levels to the House, President’s budget proposal, and the FY25 enacted level.
The Senate THUD bill and accompanying report language included:
Increased funding for housing vouchers and project-based rental assistance and did not include proposals to block grant rental assistance
Provided $1.25 billion for the HOME Investment Partnerships program
Provided $158 million for NeighborWorks America
Directed HUD to conduct a study on the state of the property insurance market, with an emphasis on insurance for properties that are rent-restricted or rent-assisted
Directed HUD to work with the White House and others on improving the environmental review process
Directed HUD to ensure Build America, Buy America waiver requests can be processed in a timely and transparent manner
Emphasized the Committee’s continued interest in a study HUD is required to perform on the role of institutional investors
What’s Next: The full Senate will need to consider the THUD bill. The Senate is scheduled to depart next week for August recess and will most likely return to funding bills in September.
Click here for the text of the Senate THUD bill.
Click here for the bill summary.
Click here for the bill report language.
FY26 House FSGG Appropriations
On Monday, July 21, the House Appropriations Financial Services and General Government (FSGG) Subcommittee voted to advance its FY26 funding bill on a 9-6 party-line vote. That bill included $276.6 million for the CDFI Fund, below the $324 million provided in FY25 but equal to the House’s proposed CDFI funding in FY25 and significantly more than the President’s FY26 funding request. The President’s budget had proposed to defund existing CDFI grant programs and instead provide $100 million for a new Rural Financial Assistance Program, as well as maintain the bond guarantee program. The House did not provide funding for a Rural Financial Assistance Program. The House bill included:
$170 million for CDFI financial assistance and technical assistance grants
$35 million for the Native American CDFI Assistance (NACA) program
$35 million for the Bank Enterprise Award (BEA) program
$3 million for the Small Dollar Loan program
$33.6 million for CDFI Fund and New Markets Tax Credit Program administrative expenses
$500 million in Bond Guarantee Program authority.
What’s Next: The House has departed for August recess and will not take up funding bills again until members return in September. The FSGG bill must still be considered by the full Appropriations Committee before proceeding to the House floor as both chambers work to fund the government by the September 30 deadline. The Senate has not announced when it will consider its FSGG bill.
Click here for the text of the House FSGG bill.
Click here for the bill summary.