House Appropriations Subcommittee Advances FY27 HUD Funding Bill

The House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies met today to mark up the Fiscal Year 2027 Transportation, Housing and Urban Development, and Related Agencies Appropriations Bill. The subcommittee voted to advance the bill to the House Appropriations Committee, which is scheduled to vote on the bill on June 4.

The bill would provide the U.S. Department of Housing and Urban Development (HUD) $71.377 billion in discretionary funding, which would be a $5.942 billion or nearly eight percent decrease from enacted levels in FY26. Funding levels for programs of interest include:

• $500 million for the HOME Investment Partnerships Program (HOME), a $750 million or 60 percent decrease from enacted FY26 funding levels.
• $38.083 billion for Tenant-Based Rental Assistance (TBRA), a $356 million or one percent reduction in funding from FY26.
• $18.975 billion for Project-Based Rental Assistance (PBRA), $432 million or two percent more than FY26 enacted levels.
• $3.3 billion for the Community Development Block Grant (CBDG) formula grant program, level with FY26 funding. An additional $2.523 billion would be available for Economic Development Initiative (EDI) projects, also known as congressionally directed spending or earmarks, which would be 30 percent or $1.092 billion less than FY26 enacted funding levels.
• $4.161 billion for Homelessness Assistance Grants, $256 million or six percent less than the FY26 enacted level.
• $1.062 billion for the Section 202 Housing for the Elderly program, a $31 million or three percent increase over the FY26 enacted level.
• $296 million for the Section 811 Housing for Persons with Disabilities program, $9 million or three percent higher than the FY26 enacted level.
• $26 million for Housing Counseling, a $32 million or 55 percent decrease from FY26 funding levels.

HOME

While the $500 million the subcommittee provides for HOME is a significant cut to FY26 enacted funding levels, it indicates support among appropriators for continued funding for the program. Last year, the House zeroed out funding for HOME in concurrence with the administration’s budget request, but funding was ultimately restored by the Senate. Thus, it is significant that the House did not zero out the program in the FY27 bill, as proposed by the administration again in its budget request.

The bill includes a provision that would exempt HOME, CDBG and EDIs, public housing, and Native American housing programs from Build America, Buy America (BABA) Act requirements, applying to “assistance made available in this or prior years.” The bill also includes a provision that would require HUD to review and update its BABA guidance and report its findings to Congress. This provision is identical to language included in the House’s affordable housing package, which passed on Wednesday. NCSHA has been advocating with appropriators for both BABA provisions.

Continuum of Care

The House rejected the administration’s proposal to consolidate the Homeless Assistance Grants programs within the Emergency Solutions Grant program and eliminate Continuum of Care (CoC) funding. Instead, the bill would provide $3.779 billion for the CoC program, a decrease of more than $231 million from enacted FY26 funding levels. The bill, as it did last year, would direct HUD to use at least 60 percent of those funds for permanent supportive housing (PSH) project renewals. Assuming HUD provides only the minimum required by the FY27 bill for renewals, some PSH projects will lose out on renewal funding beginning in 2028 when the contracts funded with FY26 dollars expire.

Rental Assistance

TBRA would receive a one percent reduction in funding in FY27 compared to FY26 enacted funding levels, and PBRA would receive a two percent increase. Both programs would receive significantly less funding for administration, however, with TBRA set to receive $2.3 billion for administrative fees and PBRA to receive $400,000 million for contract administration. These would represent 19 and 21 percent cuts, respectively, for administrative expenses from enacted FY26 funding levels.

The bill also includes the same provision appropriations bills have included each of the last few years prohibiting HUD from issuing a new solicitation for PBRA contract administrators under traditional procurement procedures.

Pathways to Removing Obstacles to Housing Grant Program

The budget would eliminate funding for the grant program designed to identify and remove barriers impeding the construction and preservation of affordable housing across the country. The program received $50 million in FY26 but was also marked for elimination in the administration’s budget proposal earlier this year.

A summary of the bill may be found here. For more information on program funding, see NCSHA’s budget chart.