Congress Fails to Pass Budget, Causing Government Shutdown
October 1, 2025 – Last night, FY 2025 ended without Congress passing an FY 2026 Appropriations package, triggering a government shutdown. NAHRO’s shutdown resource page has been updated and can be found on the NAHRO website. HUD’s most recent contingency plan published on September 29, 2025 is on the HUD website.
NAHRO has also updated its state- and territory-level data flyers to reflect funding proposals in the House and Senate bills. NAHRO encourages members to use this data with any outreach out you may have with your elected officials and their staff throughout the shutdown and appropriations process.
NAHRO has heard from HUD that PHAs should be largely unaffected, at least initially. Funds for the Public Housing Operating Fund have been obligated through November 2025, and HAP and Admin Fee payments have been loaded for October and two weeks of November. October shortfalls are scheduled in the system, and HUD is working on getting November shortfalls added as well. The impact on Community Planning and Development grants will largely depend on whether funds have already been disbursed. As in past shutdowns, the key question is whether HUD staff will be in the office to process payments and get funds to grantees. Any grants not yet awarded will be on hold until after the shutdown ends. While the expectation is that this will be a relatively short shutdown, the current climate of brinkmanship in Washington means nothing can be ruled out.
HUD published a new contingency plan for a lapse in funding on September 29, 2025, along with an overtly political shutdown message on their website that may have Hatch Act implications. Remember, PHA staff should remain in compliance with Hatch Act requirements. The White House has also signaled they are possibly preparing for mass firings during the shutdown which would go beyond typical furloughs that occurred in the past.
The duration of the shutdown remains uncertain and hinges on whether Democrats and Republicans can reach agreement on a short-term funding measure. A House-passed continuing resolution to fund the government through November 21 fell short of the 60 votes required in the Senate. Likewise, a Senate Democratic proposal to extend funding until October 31 also failed. Developments in the coming week will provide a clearer picture of how, and when, the shutdown might be resolved.
NAHRO will continue to remind Congress of the importance of maintaining the federal commitment to housing and community development. This means returning to the proper order of passing appropriations bills and using continuing resolutions to avoid unnecessary government shutdowns. NAHRO has also updated its state- and territory-level data flyers to reflect funding proposals in the House and Senate bills. NAHRO encourages members to use this data with any outreach out you may have with your elected officials and their staff.
NAHRO will provide additional resources to its members as the shutdown continues.