The Washington Report

HUD's Office of Housing Counseling recently announced approximately $56.1 million in funding that HUD-certified housing counseling agencies can apply for, with roughly 175 awards anticipated. Unlike previous years, agencies cannot use program funds for one-on-one prepurchase counseling but can instead direct funding toward rental counseling for HUD-assisted households with a focus on transitioning to unassisted housing, Home Equity Conversion Mortgage (HECM) counseling, disaster preparedness and recovery, and homeless prevention services that emphasize treatment, recovery and self-sufficiency. Funding can also be used to provide post-purchase counseling but only if the homeowner has a federally backed mortgage, including FHA, VA and USDA loans. Applications are due May 26, 2026.

NAR supports housing counseling as a tool for expanding sustainable homeownership and will work to ensure prospective homebuyers retain access to prepurchase counseling services.

On Friday, April 3, the White House released its fiscal year 2027 budget proposal, which suggests to Congress the preferred funding levels for a wide range of discretionary agency spending. The proposed budget includes significant cuts to the Department of Housing and Urban Development's (HUD) budget, including the elimination of the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program, housing counseling assistance, and the Fair Housing Initiatives Program. It also proposes prohibiting public housing agencies from issuing new vouchers through the Housing Choice Voucher program, with limited exceptions.

The president's proposed budget is not policy; it is sent to the appropriators in Congress as a messaging document sharing the White House's spending priorities. The Appropriations Committees will consider its proposals but ultimately will develop their own budget to reflect their own priorities and those of their constituents. NAR is monitoring the budget-making process and actively advocating for the wide range of federal grants and programs used to support homebuyers, a healthy rental housing market, and REALTORS® around the country.

On March 26, 2026, Sen. Tammy Duckworth, with co-sponsors Sen. Tim Sheehy and Sen. Jim Banks introduced the VA Appraisal Modernization Act (S. 4218), which addresses the shortage of VA appraisers by:

• Amending current law to adjust all VA home appraisal fees to keep pace with inflation in the industry;
• Requiring the secretary of Veterans Affairs to increase appraisal fees in areas that have an insufficient supply of appraisers, encouraging more of these professionals to join the VA network;
• Subjecting all appraisals made in high-demand counties and remote areas to mileage reimbursements to reduce appraisers' personal costs in these in-demand regions, and;
• Directing the secretary of Veterans Affairs to study the feasibility and advisability of procuring contracts for home appraisers in areas where supply cannot meet demand and the feasibility of restructuring VA appraisals to more closely mirror the Federal Housing Administration's process.

NAR supports this bill, as it believes that appraisals are vital to the homebuying process and that appraisers should be compensated appropriately to reflect the quality of their work.