By Jenna Abbott, Executive Director CCAH
After 40 long days of shutdown, it appears lawmakers have finally struck a deal to reopen the federal government. This agreement would end weeks of uncertainty, recriminations, and potentially even scale back reductions in force (RIFs) that left many federal employees furloughed and critical programs frozen. The proposed new deal restores SNAP and food assistance, guarantees back pay for federal workers,
and allows agencies to resume operations. For those of us in the affordable housing industry, this is a big sigh of relief—but it’s not the end of the story.
The agreement includes a vote on a minibus funding package for VA–Military Construction, the Department of Agriculture, the FDA, and Government Operations, plus a continuing resolution that keeps the government running through January 29 while Congress works on budgets for the remaining agencies—including HUD. That means we’re back in business for now, but the clock is ticking toward another potential showdown early next year should federal lawmakers not reach a binding agreement before the next deadline.
So, what does this mean for affordable housing in California? First, assuming this deal holds, HUD employees will return to work soon, which should translate into contracts being closed and processes moving back toward normal. That’s critical for Section 8 renewals, Project-Based Rental Assistance, development deals that require HUD and /or USDA to close, and other programs that were stalled during the shutdown. Cities and counties can resume disbursement of HOME and CDBG funds, which are essential for gap financing. USDA programs that serve rural communities will restart, and the IRS can get back to LIHTC compliance work—avoiding further delays for projects already in motion.
There’s also good news on the policy front. Based on the deal language, we expect the announced elimination of CDFI staff and funding to be rescinded, thanks to strong pushback from lawmakers. And with the House back in session, we’re looking forward to progress on the HOME Reform Bill and other housing provisions.
But here’s an important reminder: federal employees are returning to offices after a stressful time of more than 40 days of inactivity, with mountains of work waiting for them. Let’s give them some grace and patience as they dig out from under the backlog. The shutdown was disruptive for everyone, including those tasked with administering the programs we rely on.
Having said that, now is the time for action. If you are not already a member, ple Join CCAH and be part of the advocacy efforts we have underway to ensure stability, push for long-term funding solutions, and keep affordable housing at the top of the legislative agenda both here in California and Federally. Your voice matters—whether it’s contacting lawmakers, supporting PAC initiatives, or helping us shape policy that works for California.
The reopening of the federal government is a step forward, but sustained advocacy and planning are essential to keep progress on track. Let’s make sure we’re ready.