Congress Releases Final Funding Levels for HUD, Preserving Key Housing Programs

Congressional appropriators released a $460 billion minibus appropriations package for fiscal year 2026 that includes the Transportation, Housing and Urban Development (THUD) spending bill, largely rejecting the administration's proposals to eliminate several critical housing programs.

NAR earlier sent letters to congressional appropriators urging full funding for these essential housing programs. The released THUD bill maintains funding for the programs NAR advocated for throughout the appropriations process, avoiding the deep cuts proposed in earlier versions and preserving federal support for housing stability, homeownership access, and community development.

Housing Choice Vouchers received $34.96 billion, a significant increase from the FY 2025 level of $32.15 billion. This should be sufficient to renew all existing vouchers and provide continued housing stability for over 2 million households, including seniors, people with disabilities, and working families. The voucher program operates as a successful public-private partnership combining federal funding with participation from private market landlords, many of them small, mom-and-pop property owners. The bill rejected the administration's proposal to block the grant and dramatically reduce rental assistance.

Housing Counseling was fully funded at $57.5 million, maintaining support for the nationwide network of HUD-approved counseling agencies that help families navigate homeownership and avoid foreclosure. Studies show that counseled buyers are less likely to experience delinquencies, and REALTOR® associations across the country partner with these agencies to expand homeownership opportunities in their communities. The administration had proposed eliminating all funding for the program.

The Fair Housing Initiatives Program (FHIP) was maintained at $56 million. FHIP funds non-profit fair housing organizations to conduct testing, investigate complaints, and provide education on housing discrimination, protecting equal access to housing opportunities. Many REALTOR® associations collaborate with local fair housing centers on education and advocacy initiatives. The administration had proposed zeroing out the program entirely.

The Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs were both maintained at $3.3 billion and $1.25 billion respectively. These locally-driven programs give communities flexibility to tackle their unique housing challenges while leveraging private sector investment. CDBG supports infrastructure improvements, housing rehabilitation, and economic development, while HOME—the largest federal block grant for affordable housing production—helps communities address housing supply shortages and expand opportunities for both renters and homeowners. Housing providers and small business owners rely on both programs to provide housing where the market falls short. The administration had proposed eliminating all funding for HOME.

The minibus package also includes a reauthorization of the National Flood Insurance Program through September 30, 2026.