Senate Releases FY 2026 THUD Appropriations Bill 

July 25, 2025 — On July 24, the Senate released its fiscal year (FY) 2026 Transportation, Housing and Urban Development (THUD) appropriations bill. The House released its FY 2026 funding bill on July 13. Unlike the President’s budget, the Senate does not propose combining tenant-based rental assistance accounts into a single State Rental Assistance Block Grant, similar to the House.  

The Senate bill proposes increased funding for most accounts — save for the Public Housing Operating Fund, Choice Neighborhoods — and a small decrease in Community Development Block Grants (CDBG). Although the Senate proposes cutting the Operating Fund, it also proposes a significant increase in funding for Operating Fund Shortfall. Unlike the House bill and the President’s budget, the Senate bill would not eliminate the HOME Investment Program and would provide level funding for the program.  

NAHRO will continue to educate lawmakers about the importance of these programs and the need for adequate funding in light of our housing affordability and supply crisis.  

Additional, in-depth information on these accounts and the accompanying policy changes will be available next week.  

Bill Highlights:  

• Public Housing Fund: 
  • Operating Fund: $4.873 billion, $603 million less than FY 2025. 
  • Operating Fund Shortfall: $214 million, $189 million more than FY 2025. 
  • Capital Fund: $3.2 billion, level with FY 2025.  

• Section 8: 
  • Voucher renewal funding (Housing Assistance Payments): $33.974 billion, which is $1.829 billion more than FY 2025 enacted. 
  • Administrative Fees: $2.906 billion, $135 million more than FY 2025. 
  • Tenant Protection Vouchers: $430 million for tenant protection vouchers, an amount that is $93 million more than the FY 2025 enacted amount. 
  • Mainstream Vouchers: $810 million for Mainstream Housing Assistance Payment (HAP) and administrative fees, $67 million more than FY 2025. 
  • Project-Based Rental Assistance (PBRA): $17.804 billion which is $914 million more than the FY 2025 enacted amount. 

• Community Development: 
  • HOME: $1.25 billion, level with FY 2025 enacted.  
  • CDBG: $3.1 billion, $200 million less than FY 2025. 
  • Homeless Assistance Grants: $4.53 billion, $479 million more than FY 2025. 
  • Choice Neighborhoods: $40 million, $35 million less than FY 2025.  

• Self-Sufficiency:  
  • FSS: $156 million, $15 million more than FY 2025. 
  • ROSS: $45 million, $5 million more than FY 2025. 
  • Jobs-Plus: $10 million, $5 million less than FY 2025.