FY2026 Federal Transportation, Housing and Urban Development Appropriations Bill Approved in House Committee
The FY26 Transportation, Housing and Urban Development Appropriations bill was approved by the House Appropriations Committee 35 to 28. This bill deviates from President Trump’s budget proposal, while still conceding to significant cuts to housing assistance programs.
The House Committee’s bill provides a total discretionary allocation of $89.910 billion, which is $4.458 billion (4.7%) below the Fiscal Year 2025 enacted level–in line with efforts to reduce government spending on the federal level. Included in this bill is an additional $2 billion for the Federal Aviation Administration (FAA). Transportation, Housing and Urban Development Subcommittee Chairman Steve Womack (R-AR) noted that the bill was an opportunity to “support the programs that benefit Americans most and use taxpayer dollars as efficiently as possible.”
This bill proposes $67.8 billion for HUD’s affordable housing, homelessness, and community development programs, $939 million less than FY2025.
The Community Development Block Grant (CDBG) Program remains intact under this bill, budgeting $3.3 billion for the program, on par with the formula grant funding allocated in FY2025. The bill also includes $2.312 billion in Community Project Funding for 1,678 Economic Development Initiative (EDI) projects requested by 356 Members (earmarks). This bodes well for EDI earmark funding requests placed this spring. President Trump’s proposed budget did not include funding for CDBG or EDI.
Despite maintenance of some key programs, there is still significant opposition to this bill. “This bill is a pro-eviction, pro-homelessness, and pro-discrimination platform,” remarked Representative Rosa DeLauro (D-CT), ranking member of the House Appropriations Committee, according to the National Low Income Housing Coalition, which noted that the bill would “provide HUD with broad flexibility to allow public housing authorities (PHAs) to waive or create alternatives to key statutory requirements, which could allow for harmful work requirements, time limits, and rent increases.”
While the final FY2025 budget included $1.25 for the HOME Investment Partnerships Program (HOME), this bill completely eliminates funding for HOME, in line with President Trump’s budget proposal. HOME provides grants to state and local governments to create affordable housing for low-income households.
The Senate Appropriations Committee will be considering the bill on July 24, 2025. After passing in the Senate Appropriations Committee (provided that it does pass), the bill will also need to pass in the House and Senate Chambers. The bill will require bipartisan support, as any spending bill needs at least 60 votes to pass the Senate.
The Aubrey Group diligently stays up to date with federal and state appropriations–legislative actions that directly affect our clients and our communities. While this budget has not been passed in the law, we do our best to provide updates like this one that may be of interest to our clients.