By David Gasson
| With the January 30th Continuing Resolution deadline approaching, the House appropriators have released the text for the next minibus funding package, which includes allocations for Transportation, Housing and Urban Development. Here is the summary of the THUD funding package for review. This new funding bill maintains support for the HOME program and establishes requirements to ensure the timely renewal of Continuum of Care grants. Additionally, the bill increases funding to housing vouchers and other key line items. The bill allocates a total of $77.3 billion to the Department of Housing and Urban Development (HUD). Notable funding amounts include: Tenant-Based Rental Assistance/Section 8 Housing Vouchers: The bill provides $38.4 billion for these vouchers, an increase from both the $35.3 billion included in the House Republican THUD bill and the fiscal year 2025 enacted funding level of $36.04 billion. Project-Based Rental Assistance: Funding is set at $18.5 billion, which exceeds both the $17.127 billion in the earlier House THUD bill and the FY 2025 enacted level of $16.5 billion. HOME Program: The bill restores funding for the HOME program at $1.25 billion. This is a reversal from the House Republican THUD bill, which would have eliminated funding for this program. Community Development Block Grants (CDBG): The bill maintains funding at $3.3 billion, holding level with previous years. Public Housing: Funding for public housing is set at $8.3 billion—$1 billion more than the earlier House bill, though still less than the prior enacted level, which was close to $9 billion. Choice Neighborhoods: The bill allocates $25 million for the Choice Neighborhoods program, a reduction from the current level of $75 million. The proposal rejects policy changes proposed in the House bill that would have granted HUD authority to impose work requirements, set time limits, or increase rent burdens for low-income families. In terms of homelessness assistance, the bill provides $4.4 billion for Homeless Assistance Grants, representing an increase of $366 million over the fiscal year 2025 amount. The funding proposal, if adopted, would reject HUD’s proposal to reduce funding and eliminate the Continuum of Care program entirely. The House of Representatives intends to vote on the entire funding package this week, pending resolution of some issues, including the Department of Homeland Security funding. Once the House votes, the bills will be sent to the Senate. The Senate will return from its recess next week and begin its process to pass the final minibus. This timeline is designed to ensure the bill reaches the President’s desk for signature before the January 30 funding lapse. It is hard to believe, but if all works out as Republicans hope, we will have an actual budget for FY 2026, albeit four months late. Regarding housing regulatory reform, we still await the Speaker scheduling a vote on the Housing in the 21st Century Act, the bipartisan housing regulatory reform bill passed by the House Financial Services Committee by a vote of 54 – 1 in December. There is a lot of pressure to address affordability issues, most importantly housing. We are told that once the final appropriations bills are passed, the Speaker may announce the timing for the housing bill, which will be sent to the Rules Committee and then to the House floor. Once the House votes (approves) the Housing in the 21st Century Act, negotiations between the House and Senate will begin. Melding this bill with the ROAD to Housing Act passed by the Senate in November will be a bit complicated, as there are differences in the proposals, especially since the Senate bill proposes funding, while the House bill does not. Our main focus will be on the BABA (Build America Buy America) provision in the HOME Reform portion of the House bill, which would eliminate the BABA mandate for HOME funds. We are already lobbying Senate offices on this provision and ask that you also focus on it as you have conversations with them. The other bit of news we are expecting this week is the much-anticipated announcement from the President on his housing plan. We have been told he will declare a housing emergency and issue an executive order addressing a myriad of proposals and regulatory reforms covering everything from single-family housing to the GSEs to affordable housing. We are eager to see what recommendations we provided to the administration are adopted within this effort, and hope some of the bigger issues, especially those not addressed by the House and Senate housing bills, will be included. Specifically, will the Administration propose an examination of Davis Bacon, insurance reform, simplification of the debt financing process, and more. The President is expected to present his proposal tomorrow morning in Davos, Switzerland, and we will be listening carefully. We will get back to you with another update once we have that information. We are again on the cusp of significant advances in affordable housing, and it is the education and advocacy of the Housing Advisory Group and our colleague organizations that have led to these successes. We look forward to 2026 being another great year for affordable housing. |