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The House Appropriations Subcommittee on Transportation, Housing, and Urban Development has approved its fiscal year 2027 spending bill. While the bill rejects many of the deep cuts and policy proposals included in the president’s budget request, it includes reduced funding levels for several key affordable housing and community development programs. 

The subcommittee bill provides $71.4 billion in net discretionary funding for HUD, approximately $6 billion (8%) below the agency’s FY2026 enacted level. The subcommittee bill provides $71.4 billion in net discretionary funding for HUD, approximately $6 billion (8%) below the agency’s FY2026 enacted level. 

This spending bill closely mirrors the FY26 House proposal, and we remain optimistic that the final appropriations process will result in funding levels that reflect evolving housing and community development needs and priorities.

The House Republican summary suggests funding for rental assistance programs is sufficient to renew all existing housing contracts despite lower funding amounts for the Housing Choice Voucher and Public Housing Fund programs. Unlike the president’s budget request, the bill includes increased funding for several of Enterprise’s priority programs, including the Community Development Block Grant (CDBG) program and Native American housing programs. In addition, the bill does not include language from the President’s request that would have provided the HUD secretary authority to require work requirements and time limits for certain assisted households. 

The House proposal also includes exemptions to Build America, Buy America Act (BABA) requirements for the Community Development Fund (including Economic Development Initiatives and CDBG), the HOME Investment Partnership program (HOME), Self-Help and Assisted Homeownership Opportunity Program, Public Housing Fund, and the Native American Programs. This exemption is important to ensure housing and community development projects can move forward efficiently in cases where domestic materials are not available in sufficient quantities or would significantly increase project costs or delay delivery.

Grant programs such as the HOME Investment Partnerships Program are funded at higher levels than proposed in the president’s budget request but remain below FY2026 enacted levels.

A breakdown of the affordable housing and community development spending levels can be found in our Fiscal Year 2027 Budget Request and Appropriations Chart. Here’s where funding for some of HUD’s key programs stands compared to last year’s budget:

  • $38.1 billion for Tenant-Based Rental Assistance (Housing Choice Vouchers), a $355 million (1%) decrease from FY26.
  • $18.9 billion for Project-Based Rental Assistance, a $432 million increase (2%) from FY26.
  • $7.1 billion for Public Housing Fund, a $1.25 billion (15%) decrease from FY26. This total includes $4.7 billion for the operating fund, level with FY26, and $2.3 billion for the capital fund, $913 million (29%) below FY25.
  • $1.06 billion for Section 202 Housing for the Elderly, a $31 million (3%) increase from FY26.
  • $295 million for Section 811 Housing for Persons with Disabilities, $8.6 million (3%) above FY26 enacted.
  • $5.9 billion for the Community Development Fund (CDF). Of this, $3.3 billion is allocated for the CDBG, equal to FY26.
  • An additional $2.5 billion in CDF is for earmarks and congressionally directed spending projects. The House proposal does not include funding for the Pathways to Removing Obstacles (PRO) Housing grant program.
  • $4.16 billion for Homeless Assistance Grants, $256 million (6%) below FY26 enacted. This includes $290 million for Emergency Solutions Grants (ESG) and $3.8 billion for Continuum of Care (CoC), rejecting the administration’s proposal to consolidate the Housing Opportunities for Persons with AIDS, ESG, and CoC programs.
  • $1.4 billion for Native American Programs, $46 million above FY26. This includes $1.16 billion for the Native American Housing Block Grant formula program, a $46 million (4%) increase above FY26, and $125million for the competitive program, level with FY26.
  • $125 million for the Family Self-Sufficiency (FSS) program, $31 million (20%) below FY26.
  • $48.5 million for the Fair Housing Activities, a $37.9 million (44%) decrease from FY26. The proposal maintains the funding for the Fair Housing Assistance Program ($26 million) and the Limited English proficiency initiative ($1 million) but reduces funding for the National Fair Housing Training Academy by half ($1.5 million, funded at $3 million in FY26) and would eliminate funding for the Fair Housing Initiatives Program (funded at $56 million in FY26).
  • $42 million for the Section 4 program, a $4 million (9%) decrease from FY26.
  • The proposal provides no new funding for the Choice Neighborhoods Initiative (funded at $25 million in FY26) nor the Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program (this program received no new funding in FY26). 

U.S. Department of Agriculture (USDA) 
On April 29, the House Appropriations Committee approved the proposed spending levels for rural housing programs under the USDA Rural Housing Service. Some highlights for the Rural Housing Service programs include:

  •  $1.795 billion for Section 521 Rental Assistance, $80 million (5%) above FY26, and the continuation of the decoupling pilot program. 
  • $1 billion for the Section 502 Single Family Housing Direct Loan Program, equal to FY26. It also provides $6 million for the Tribal Direct Relending Pilot, $1 million above FY26. 
  • $400 million for the USDA Section 538 guaranteed loans to preserve and rehabilitate USDA rental housing, level with FY26.
  • $50 million for the Section 515 Rural Rental Housing program, equal to FY26.
  • $30 million for the Multi-family Housing Preservation and Revitalization Program, level with FY26. 

Treasury

On April 22, the House Appropriations Committee approved the proposed funding levels for the Treasury, which also provides funding for the Community Development Financial Institutions Fund (CDFI Fund) program. The Financial Services and General Government spending bill would provide $276 million for the CDFI Fund, $47 million (15%) below FY26 levels. The bill does not include the administration’s proposal to eliminate all CDFI Fund financial assistance programs, nor does it include the proposed $100 million program targeted to rural areas. The bill also directs the CDFI Fund to obligate previously appropriated funds and would withhold funding to the Office of the Secretary until then.

What’s Next

The House Appropriations Committee will consider the THUD bill in full committee on June 4. From there it could advance to the House floor. The House has already begun moving several FY2027 appropriations bills through subcommittee and full committee, with additional measures expected to follow ahead of potential floor consideration.

The Senate has not yet released its FY2027 spending proposals but is expected to begin advancing its appropriations bills in the coming weeks. Differences between the House and Senate proposals—particularly around overall funding levels and policy provisions affecting key housing and community development programs—will need to be resolved later in the year. A continuing resolution (CR), a stopgap funding measure that extends current funding levels, is widely expected ahead of the September 30 fiscal deadline and could extend into the period following the November midterm elections. A CR would provide additional time for Congress to negotiate differences between the chambers’ proposals and avoid a government shutdown.

Enterprise will continue our work in the 119th Congress, engaging with lawmakers, the administration, and our partners to advocate for robust funding for housing, community development, homelessness, and resiliency programs that make communities stronger.

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