President Trump signed the Consolidated Appropriations Act, 2026 on February 3, enacting a $1.2 trillion “minibus” spending package that provides full-year discretionary funding for federal agencies covered by five of the 12 annual appropriations bills: Defense; Financial Services and General Government; Labor, Health and Human Services, and Education; State/Foreign Operations; and Transportation, Housing and Urban Development (THUD). The signing ended a brief partial government shutdown that began January 31, after the prior FY26 continuing resolution expired on January 30.
The legislative path was narrow but consequential. The Senate approved the THUD division 71–29. The House then passed the Senate-amended package on February 3 by a 217–214 vote, after negotiators replaced long-term Department of Homeland Security (DHS) funding with a short-term continuing resolution to keep DHS operating through February 13. With the President’s signature, Congress has now enacted 11 of the 12 traditional appropriations bills for FY26.
For HUD, the THUD division locks in full-year funding through September 30, 2026. Appropriations summaries most often cite $77.3 billion in discretionary funding for HUD programs in the THUD bill.
Key FY26 THUD HUD Funding Levels
Rental Assistance
- Tenant-Based Rental Assistance (TBRA / Housing Choice Vouchers): $38.439 billion, up from $36.04 billion in FY25.
- Within TBRA, $35.0 billion is provided for renewal of expiring Section 8 voucher contracts.
- Targeted voucher support continues, including $15 million for new incremental HUD–VASH vouchers and $30 million for additional Family Unification Program vouchers.
- While the topline increase is significant, it remains unclear whether renewal funding will be sufficient to fully cover renewal needs in all markets, which could prompt some PHAs to manage utilization more conservatively during FY26.
- Project-Based Rental Assistance (PBRA): $18.543 billion, a $2.053 billion increase over FY25. Appropriations committee summaries indicate this level is expected to support renewal of PBRA contracts expiring in FY26.
- Tenant Protection Vouchers (TPVs): approximately $600 million, a substantial increase over FY25 (roughly $264 million, or 78.2%, above the prior year). The bill includes language allowing PHAs to use TPVs to transition families currently assisted through the pandemic-era Emergency Housing Voucher program, which was funded with one-time resources that have been depleted earlier than expected.
CDBG, HOME, and Gap Financing
- Community Development Block Grant (CDBG) formula grants: $3.3 billion, level with FY25.
- HOME Investment Partnerships: $1.25 billion, level-funded from FY25 after facing the prospect of elimination earlier in the appropriations cycle.
- Competitive “barriers to housing” grants (PRO Housing / YIMBY incentive grants): $50 million, supporting jurisdictions pursuing zoning and land-use reforms to expand housing supply. This amount is lower than FY25 but preserves the program’s continued federal emphasis on local pro-housing policy changes.
Public Housing and Neighborhood Revitalization
- Public Housing Fund: $8.319 billion, less from the prior enacted level of close to $9 billion.
- Within that total, public housing capital subsidies are funded at $3.2 billion, while operating subsidies are funded at roughly $4.69 billion. Even with RAD conversions shifting some long-term resource needs to voucher and PBRA accounts, these levels may translate into ongoing operating pressure and prorations in many markets.
- Choice Neighborhoods Initiative: $25 million, a steep reduction from FY25 (approximately $50 million lower).
- Assisted Housing Inspections and Risk Assessments: $50 million.
Homelessness
- Homeless Assistance Grants (McKinney-Vento): approximately $4.4 billion, including:
- $4.01 billion for Continuum of Care (CoC) and related rural homelessness resources (including Rural Housing Stability Assistance), and
- $290 million for Emergency Solutions Grants (ESG), level with FY25.
- The bill also provides $107 million to continue youth homelessness initiatives.
Beyond funding levels, the law includes unusually direct timing requirements intended to prevent service disruptions caused by delayed awards. The bill directs HUD to avoid CoC gaps by requiring non-competitive renewals when awards are late, including:
- 12-month non-competitive renewals for grants expiring January 1–March 31, 2026
- If awards are not made by April 1, renew grants expiring April 1–June 30, 2026
- If awards are not made by July 1, renew grants expiring July 1, 2026 or later
- HUD must release the FY26 CoC NOFO by June 1, 2026, and make awards by December 1, 2026
- The bill also includes language requiring the FY26 CoC NOFO to allocate at least 60% of CoC funds to “Tier 1” activities, including permanent supportive housing and rapid rehousing.
These guardrails are designed to address repeated cycles of late NOFOs and delayed awards that have strained provider cash flow, staffing, and continuity of services.
Special Populations and Health/Safety
- Section 202 Housing for the Elderly: $1.031 billion, roughly $100 million above the prior enacted level. The funding fully supports annual rental assistance contract renewals and provides $122 million for service coordinators but includes no funding for new capital advances or new PRAC awards.
- Section 811 Housing for Persons with Disabilities: $287 million, about $30 million above FY25.
- Housing Opportunities for Persons with AIDS (HOPWA): $529 million, a $24 million increase over FY25.
- Office of Lead Hazard Control and Healthy Homes: approximately $296 million.
Other Selected THUD-Related Items
- Neighborhood Reinvestment Corporation (NeighborWorks): $158 million
- U.S. Interagency Council on Homelessness: $3 million
- HUD salaries and expenses: $1.455 billion, reflecting a reported 24% reduction in HUD staffing within the bill’s administrative accounts.
What Happens Next
With FY26 appropriations largely complete, attention will shift quickly to FY27. The President’s FY27 budget request now expected in March, following the February 24 State of the Union.
Separately, housing stakeholders are also tracking bipartisan authorization legislation moving on a parallel track. The House is expected to consider the Housing for the 21st Century Act (H.R. 6644) during the week of February 9 under suspension rules requiring a two-thirds vote. In the Senate, the ROAD to Housing Act (S. 2561) may be considered as a standalone bill later in February, setting up a potential House–Senate process to reconcile differences if both chambers advance competing versions.