Congress Nears Midterms, FY 2027 HUD Funding Unresolved
By: Gabriel Smith, Legislative Affairs Manager
October 26, 2026
Toplines
- Congressional calendar: The House and Senate are holding pro forma sessions this week, with no regular legislative business scheduled.
- FY 2027 HUD funding: Full-year appropriations remain unresolved. The current continuing resolution expires December 11.
- Senate THUD: Senate Appropriators have not released FY 2027 Transportation, Housing and Urban Development appropriations proposal yet, expected soon.
- HUD developments: A new federal manufactured housing initiative could influence future housing production and regulatory policy.
- PHA deadlines: November 1 and December 31 are important dates for Emergency Housing Voucher transitions, while HOTMA enforcement approaches for most PHAs.
Congressional Calendar
The House is in its district work period, with a pro forma session scheduled for Monday. The Senate is also holding a pro forma session and is expected to resume regular legislative business on November 9 following the Nov 3 midterms.
Election results will determine the composition of the 120th Congress and membership and leadership of committees on key housing and community development related committees.
However, the current 119th Congress remains responsible for addressing the December 11 funding deadline.
Housers should continue engaging current congressional offices on FY 2027 funding while preparing to introduce their agencies and communities to newly elected lawmakers following the midterm election.
The DC Read: FY 2027 Funding Decisions Remain Ahead
The House Appropriations Committee approved its THUD proposal in June, but the measure has not passed the full House. Senate THUD has not yet released its proposal. In negotiations, the House proposal typically features proposed funding amounts than the Senate proposal.
The House THUD bill includes several funding levels of concern to NAHRO:
- Housing Choice Vouchers: Proposed renewal funding may not fully address rising rental assistance costs.
- HCV administrative fees: A proposed $536 million reduction compared with FY 2026 enacted funding.
- Public Housing Capital Fund: A proposed $914 million reduction, potentially limiting modernization and preservation efforts.
- HOME: A proposed $750 million reduction, affecting local affordable housing development and preservation.
- CDBG: Proposed level funding that would not account for rising construction and program costs.
The continuing resolution generally maintains funding at FY 2026 rates temporarily, but it does not resolve these proposed funding levels. The Senate proposal will provide more insight into how Congress could fund programs in light of sharp cuts in the President and House FY 2027 proposals.
For PHAs and community development agencies, the concern is predictability. Reliable federal funding supports voucher administration, landlord participation, property maintenance, housing production, and long-term planning.
Program Notes: Upcoming PHA Deadlines
Emergency Housing Vouchers
HUD Notice PIH 2026-25 provides for the transition of eligible Emergency Housing Voucher households to tenant protection vouchers.
Two Key Deadlines:
- November 1: Deadline for applicable transitions into existing HCV assistance or previously authorized PBV arrangements.
- December 31: Deadline to complete the conversion of remaining eligible EHV households to EHV tenant protection vouchers.
Agencies should review HUD’s guidance, confirm their transition plans, and communicate with affected households. Continued advocacy will be critical for vouchers in future years.
HOTMA Implementation
January 1, 2027, remains the enforcement date for Sections 102 and 104 of the Housing Opportunity Through Modernization Act for most PHAs.
Different timelines apply to certain Moving to Work agencies and agencies using HUD’s Family Reporting Software.
Agencies should review applicable requirements, coordinate with software providers, and ensure staff are prepared for implementation.
Homelessness Assistance
NAHRO recently submitted comments expressing concerns about changes to HUD’s FY 2026 Continuum of Care competition, including increased emphasis on transitional housing and supportive-services-only projects.
NAHRO emphasized the importance of protecting housing stability and considering the potential effects on households currently receiving permanent housing assistance.
A Reminder About NAHRO Votes
With Election Day approaching, NAHRO also encourages members to share NAHRO Votes, a nonpartisan civic engagement resource that connects residents and communities with official voting information. Any PHA civic engagement activities should remain strictly nonpartisan and comply with applicable legal requirements.