Memo to Members

Advocates and Congressional Champions Secure Vital Funding Increase and Policy Provisions in Final FY26 HUD Funding Bill

Feb 09, 2026

By Kim Johnson, NLIHC Senior Director of Policy      

Congress passed, and President Trump signed into law a final fiscal year (FY) 2026 spending bill for HUD programs on February 3. The bill provides $77.3 billion for HUD programs, an over $7.2 billion increase from the previous year, and includes important policy provisions to ensure prompt award of FY25 funds, as well as future CoC awards for FY26.  

The over $7.2 billion increase provided in the final FY26 spending bill is significantly more than the $3.3 billion increase for HUD programs provided in the Senate’s FY26 spending bill; the House FY26 bill proposed cutting HUD programs by $2.2 billion. Key rental and homelessness assistance programs received funding increases, including some of NLIHC’s top priorities:  

  • $34.9 billion is provided for renewing Tenant-Based Rental Assistance (TBRA) contracts, including for the Housing Choice Voucher (HCV) program. This level is expected to be sufficient to ensure the renewal of existing TBRA contracts.  

  • Appropriators provided approximately $601 million for new Tenant Protection Vouchers (TPVs), a $264 million increase from the previous year. The bill includes language allowing Public Housing Authorities (PHAs) to use TPVs to help transition families who currently receive rental assistance through the Emergency Housing Voucher (EHV) program to new assistance.  

  • Homeless Assistance Grants (HAG) programs will receive over $4.4 billion, a $336 million increase from the previous year. This includes level funding of $290 million for the Emergency Solutions Grants (ESG) program, and $4.01 billion for the CoC program, a $466 million increase. While this increase is welcome, it is still less than what the National Alliance to End Homelessness estimates will be required to ensure full renewal of existing programs.  

  • Appropriators maintained funding for the Indian Housing Block Grant (IHBG) program, at just over $1.1 billion; however, the bill provides slightly less funding for the IHBG-Competitive program, which received $125 million, a $25 million decrease from last fiscal year.  

  • The Eviction Protection Grant Program (EPGP) will receive $7.5 million. 

  • Unfortunately, funding for both public housing operations and public housing capital needs decreased by $477 million and $210 million, respectively. Public housing operations will receive $5.02 billion in FY26, and $3.2 billion will be provided for capital needs in public housing.  

In addition to funding, the final FY26 bill includes important policy provisions for which NLIHC and our allies and partners have been advocating. The bill establishes a timeline by which HUD will need to non-competitively renew existing CoC grants awarded to communities: 

  • It requires HUD to non-competitively renew for 12 months all grants that have expired or will expire January 1-March 31, 2026.  

  • If awards are not made by April 1, HUD must non-competitively renew all existing CoC grants expiring April 1-June 30, 2026. 

  • If awards are not made by July 1, HUD must non-competitively renew all existing CoC grants expiring July 1 or later. 

In addition, the FY26 bill requires HUD to release its FY26 Notice of Funding Opportunity (NOFO) for CoCs by June 1, 2026, and award funding to communities by December 1, 2026. Learn more about the CoC and other provisions impacting homelessness services and resources here.  

The bill also includes language reiterating HUD’s obligation to conduct rulemaking in accordance with existing law and regulations, “including providing for public participation and not less than 60 days for the submission of written comments” for proposed rules.  

The increased funding and policy provisions included in the final FY26 HUD appropriations bill reflect the power of our collective advocacy. Thanks to advocates making their voices heard, members of Congress understand the important role HUD programs play in helping families afford the cost of housing, and ensuring communities can respond to the needs of people experiencing homelessness.  

It is also thanks to the continued bipartisan, bicameral work of House and Senate Appropriators and their staff, including Senate Appropriations Committee Chair Susan Collins (R-ME) and Vice Chair Patty Murray (D-WA), Senate THUD Subcommittee Chair Cindy Hyde-Smith (R-MS) and Ranking Member Kirsten Gillibrand (D-NY), House Appropriations Committee Chair Tom Cole (R-OK) and Ranking Member Rosa DeLauro (D-CT), and House THUD Subcommittee Chair Steve Womack (R-AR) and Ranking Member James Clyburn (D-SC). 

With the FY26 appropriations process nearly complete, appropriators will soon turn their attention to drafting a spending bill for FY27. Visit NLIHC’s Advocacy Hub for more information and resources that can help you take action and help protect the affordable housing programs people rely on.

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