CR Keeps Government Open as FY 2027 HUD Funding Debate Continues

By: Gabriel Smith, Legislative Affairs Manager

September 21, 2026

Congress remains in a holding pattern on FY 2027 appropriations after passing a continuing resolution in early September. The CR keeps federal agencies funded through Dec. 11, giving lawmakers more time to negotiate full-year spending bills. However, final FY 2027 HUD funding decisions remain unresolved leaving housers more opportunities to advocate for HUD programs and funding.

At a Glance

A continuing resolution is now law and funds federal agencies through Dec. 11.
FY 2027 full-year appropriations remain unfinished, including THUD.
The House briefly convened today and adjourned until Sept. 24.
The Senate convened today for a pro forma session and is scheduled to return for business on Sept. 22.
The Senate has not yet released its FY 2027 THUD bill.
Housers should continue to engage Congress on HUD funding before the Dec. 11 funding deadline.

Congressional Calendar

The House briefly convened today and adjourned until Sept. 24. The House schedule also lists committee activity today, including a House Budget Committee hearing in Dallas.

The Senate convened today at 9:00 a.m. for a pro forma session. Senate floor schedule information indicates the Senate is scheduled to return for business at 3:00 p.m. on Tuesday, Sept. 22.

For Housers, the takeaway is that much of the work now shifts to district and state engagement, staff follow-up, and preparation for the next phase of the funding debate. Congressional offices may not be moving FY 2027 THUD appropriations on the floor right now, but they are still gathering local input (from your PHA) and preparing for the Dec. 11 funding deadline.

FY 2027 THUD Appropriations

The House Appropriations Committee approved its FY 2027 Transportation, Housing and Urban Development, and Related Agencies bill earlier this summer. The House bill includes a total discretionary allocation of $92.224 billion, which is $10.659 billion, or 10.4 percent, below FY 2026 enacted.

Key NAHRO Concerns include:

Housing Choice Voucher HAP renewals: $35.453 billion, $496 million above FY 2026 enacted. NAHRO estimates this increase would not cover rising HAP contract costs.
HCV administrative fees: $2.3 billion, $536 million below FY 2026 enacted.
Public Housing Operating Fund: $4.687 billion, level with FY 2026 enacted.
Public Housing Capital Fund: $2.286 billion, $914 million below FY 2026 enacted.
CDBG: $3.3 billion, level with FY 2026 enacted.
HOME: $500 million, $750 million below FY 2026 enacted.

The Senate Appropriations Committee has not yet released its FY 2027 THUD bill. Its Transportation, Housing and Urban Development subcommittee page continues to show FY 2026 THUD materials among recent items, not a FY 2027 THUD release.

Homelessness Program Watch

NAHRO members should also watch recent developments around HUD homelessness funding. A federal appeals court has allowed the Trump administration to proceed, at least for now, with changes to a roughly $4 billion homelessness program, including a shift in funding priorities from permanent housing toward temporary housing and supportive services.

For local housing and community development agencies, the key issue is implementation. Changes to homelessness funding rules, priorities, or award structures can affect local partners, Continuum of Care planning, permanent supportive housing pipelines, and coordination with PHAs and community development agencies.

What the CR Means for NAHRO Members

The CR keeps agencies funded temporarily, but it extends uncertainty. PHAs and community development agencies may avoid immediate shutdown disruption, but final decisions on HUD funding levels are pushed later into the year.

Temporary funding does not answer major FY 2027 questions, including:

Whether HCV HAP renewals will keep pace with rising rental assistance costs;
Whether HCV administrative fees will support core program operations;
Whether Public Housing Capital Fund levels will meet preservation and modernization needs;
Whether HOME and CDBG will remain strong tools for housing production, preservation, infrastructure, and community development;
Whether final appropriations will include policy language affecting PBRA, Build America, Buy America implementation, or other HUD program operations; and
How HUD will implement funding and program changes while agencies plan for the year ahead.

News