CR Keeps Government Open as FY 2027 HUD Funding Debate Continues

By: Gabriel Smith Legislative Affairs Manager, NAHRO

(Tues) September 8, 2026

Thank you NAHRO Advocates for Bringing Housing Home during August Advocacy. Across the nation, advocates engaged in an expanded campaign, meeting with lawmakers at all levels, hosting site visits, sharing local impact, and elevating the importance of HUD programs and PHA staff expertise.

President Trump signed a continuing resolution (CR) to extend current HUD funding through Dec. 11, but FY 2027 HUD funding talks are ongoing.

At a Glance

• The Continuing Resolution funds federal agencies through Dec. 11. Negotiations on full-year FY 2027 HUD funding is ongoing.
• August Advocacy is over, Show Your Work! Submit Advocacy Engagements with pictures to help us log your site visits, interviews, affordable housing op-eds, meetings with lawmakers and staff at all levels.
• Congressional attention is shifting toward the fall election calendar and the Dec. 11 funding deadline. The next several weeks are a critical period to reinforce local housing needs with both district and D.C. staff.

The DC Read

Congress has temporarily avoided a shutdown. President Trump signed the CR into law extending current funding for federal agencies through Dec. 11, past both the midterm election and the Thanksgiving holiday.

For housers, this means the focus now shifts from shutdown prevention to final appropriations. NAHRO members should continue engaging with Congress to protect HUD programs as the December 11 funding deadline approaches.

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 has not yet released its FY 2027 THUD bill. That makes continued Senate outreach especially important as Congress moves deeper into the fall funding cycle. Continue to message your Senators and request meetings and site visits while they’re back home on the campaign trail.

What the CR Means for Housers

The continuing resolution keeps agencies funded temporarily, but it also 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.

That matters because 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; and
• Whether final appropriations will include policy language affecting PBRA, Build America, Buy America implementation, or other HUD program operations.

Houser Work

August Advocacy is over, but NAHRO Advocates are entering a critical advocacy window before CR Funds expire on Dec. 11. Use the momentum your agency has built:

• Follow up with congressional offices after meetings, tours, or local events. (thank you notes, emails, cards, materials discussed during your meetings/site visits)
• Send NAHRO’s FY 2027 Advocacy Letter.
• Share specific local examples of PHA impact with House and Senate offices.
• Keep district staff connected to agency projects, residents, landlords, and community partners

Members should continue explaining how federal funding decisions affect voucher utilization, landlord participation, waitlists, public housing preservation, HOME and CDBG projects, resident services, and local community development needs.