Congress Moves Toward Key HUD Funding Decisions

by Gabriel Smith

June 1, 2026 — The House released and advanced its FY 2027 Transportation, Housing and Urban Development, and Related Agencies appropriations bill at the subcommittee level, setting up full House Appropriations Committee consideration this week.

At the same time, the House passed the amended 21st Century ROAD to Housing Act with strong bipartisan support, shifting attention back to the Senate as Congress continues work on broader housing legislation.

For PHAs, redevelopment agencies, local governments, and community development leaders, this is a key moment to stay engaged. Use NAHRO’s Action Alert Center to write, call, or send a 1–5 minute video to your members of Congress about how HUD programs and funding are working in your community.

At a Glance

• The House THUD Subcommittee approved its FY 2027 bill on May 21.
• The bill now heads to the full House Appropriations Committee, where markup is currently scheduled for Wednesday, June 3 at 11:00 a.m.
• NAHRO’s initial analysis identifies concerns around voucher renewal sufficiency, HCV administrative fees, Public Housing Capital Fund levels, HOME funding, and PBRA operating cost language.
• The House also passed the amended 21st Century ROAD to Housing Act by a bipartisan 396–13 vote.
• The Senate must act on the House-amended housing package before the legislation can move toward final enactment.

The DC Read

The appropriations process has moved from budget proposals and hearings into bill text and committee action. The President’s budget request started the debate, but Congress writes the final funding bills.

The House draft FY 2027 THUD bill includes a total THUD allocation of $92.224 billion, which is $10.659 billion, or 10.4 percent, below FY 2026 enacted. The bill avoids some of the deepest reductions proposed in the President’s budget request, but several program areas remain a concern for PHAs and community development agencies.

Key program levels include:

• Housing Choice Voucher HAP renewals: $35.453 billion, $496 million above FY 2026 enacted. However, 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 bill also includes notable policy language. NAHRO has flagged the proposed cap on PBRA Operating Cost Adjustment Factors at 3 percent, as well as Build America, Buy America language that would exempt FY 2027 and prior-year funding for HOME, CDBG, Public Housing Operating and Capital Funds, SHOP, and Native American Programs from BABA requirements.

Why It Matters Locally

Appropriations decisions made in Washington shape local housing outcomes. The THUD bill affects voucher utilization, leasing capacity, HCV administrative operations, public housing maintenance and preservation, community development planning, resident services, redevelopment pipelines, and local housing production.

The House bill is not final. It still must move through the full House Appropriations Committee, the House floor, the Senate process, and eventual House-Senate negotiations. That means there is still time for housing leaders to shape the conversation.

Housing Legislation Also Remains Active

Separate from appropriations, the House passed the amended 21st Century ROAD to Housing Act by a bipartisan 396–13 vote. Because the House amended the Senate-passed package, the Senate must act again before the bill can move toward final enactment.

For NAHRO members, the package remains important because it includes provisions connected to housing supply, preservation, rental assistance administration, HOME, CDBG, environmental review, rural housing, manufactured housing, and local implementation.

Urge your senators to support final action on the House-amended 21st Century ROAD to Housing Act through NAHRO’s Action Alert Center.

What NAHRO Members Can Do

This is a key advocacy window. NAHRO members should:

• Contact House and Senate offices about the importance of strong FY 2027 HUD funding.
• Share local examples showing how HUD resources support residents, landlords, preservation, redevelopment, and community stability.
• Explain what HCV administrative fees mean for daily program operations, landlord participation, inspections, leasing, and resident communication.
• Tell members of Congress how Public Housing Capital Fund reductions affect maintenance, modernization, health and safety work, and long-term preservation.
• Reinforce the importance of CDBG and HOME as flexible tools for local housing and community development needs.
• Urge Senate action on the House-amended 21st Century ROAD to Housing Act.

Bottom Line

Congress is making decisions that will shape FY 2027 HUD funding and the next phase of federal housing policy. The House THUD bill is an important first marker, but it is not the final. It is a step in a longer process.

For NAHRO members, this is the moment to stay engaged, share local impacts, and keep the focus on what federal funding and policy mean for residents, staff, landlords, and communities.