Congress Returns to Capitol Hill Amid Stalled Senate Appropriations Negotiations

By Kim Johnson, NLIHC Senior Policy Director  

Members of Congress are returning to their offices on Capitol Hill today after a weeklong recess. In the Senate, negotiations over the fiscal year (FY) 2027 spending bill are likely to take center stage after disagreements over a topline spending number for defense and nondefense programs stalled the appropriations process and delayed the planned release and review of several spending bills in the chamber, including the Transportation, Housing and Urban Development (THUD) bill funding HUD programs.  

Senate Appropriations Committee Chair Susan Collins (R-ME) and Vice Chair Patty Murray (D-WA) have been locked in a stalemate over topline spending levels for federal programs, with Chair Collins seeking a drastic increase in defense spending, and Vice Chair Murray pushing for a more equitable spending increase between defense and non-defense programs. Additionally, Democrats on the committee remain concerned about ensuring that the appropriations bills are not undermined by actions of the Trump administration. Since taking office, the administration has taken various actions—including “pocket recissions,” firing members of the federal workforce, and withholding funds—that make it difficult, if not impossible, for congressionally approved funding to reach communities, undermining Congress’s authority and intent. Senator Mitch McConnell (R-KY), a member of the Senate Appropriations Committee, has also been absent; with a slight 15-14 majority, republicans on the committee need every member present and voting to overcome unified democratic opposition.  

Without a bipartisan topline spending agreement, Republicans may choose instead to release FY27 spending bills and move ahead with the process without bipartisan input; still, any final FY27 spending bills will need bipartisan support to be enacted into law. Members of Congress have until September 30—the end of the federal fiscal year—to pass all 12 of their FY27 spending bills, or to enact a continuing resolution (CR) to extend funding for federal programs for a designated amount of time. Without either final bills or a CR in place, the federal government will be at risk of a shutdown.  

Senate May Consider Proposal for Automatic CR  

The Senate may also soon consider a bill from Senators James Lankford (R-OK) and Maggie Hassan (D-NH) that would create an automatic CR to extend funding at the prior year’s level when Congress is unable to finalize their appropriations bills for the upcoming fiscal year. While the purported objective of this bill is to avoid government shutdowns, which carry significant costs to communities, families, and individuals, automatic CRs would significantly reduce pressure on Congress to reach an agreement on full-year spending bills and would cede more control over the annual appropriations process to the executive branch.  

An automatic CR increases the potential for a year-long CR, which would lock in the previous year’s funding for the new fiscal year. Annual funding increases are vital to ensuring HUD rental and homelessness assistance programs continue serving the millions of families, people with disabilities, veterans, older adults, low-wage workers, and others who rely on HUD programs to help keep a roof over their heads. Because the cost of rent increases every year, programs must receive increased funding every year to maintain assistance for current households; even flat funding acts as a cut, reducing the number of people served. At current funding levels, only one in four households who qualifies for any form of rental assistance receives it, leaving the majority of otherwise qualified households to struggle to afford the cost of housing.  

Tell Congress to Expand – Not Cut – Federal Investments in Affordable Housing and Homelessness Assistance Programs!  

At a time when a record number of renters are housing cost-burdened and families around the country are struggling to afford necessities like housing, food, and medical care, Congress should be working to expand—not cut—funding for programs that help people make ends meet.  

Advocates can use NLIHC’s toolkits and resources to take action on the FY27 spending bill, and urge federal lawmakers to increase investments in HUD programs, including NLIHC’s top priorities:  

• Full funding to renew all existing Tenant-Based Rental Assistance (TBRA) contracts, including ensuring continued assistance for Emergency Housing Voucher holders. 

• At least $5.1 billion for HUD’s Homeless Assistance Grants program to address the needs of people experiencing homelessness. 

• Increased funding for public housing operations and capital needs to help maintain and efficiently operate public housing. 

• Increased investments in programs that support the construction and preservation of deeply affordable, accessible housing, including full funding for all Section 811 Project Rental Assistance (PRA) and PRA Contract renewals, at least $424 million for new Section 811 PRA contracts, and full funding to renew all existing contracts under the Section 202 Housing for the Elderly program.  

• At least $15 million for HUD’s Eviction Prevention Grant Program (EPGP) to provide communities grants to establish right to counsel and other programs that help people avoid eviction and remain housed.  

• At least maintained funding of $1.1 billion for the Indian Housing Block Grant (IHBG) program and increasing funding to $150 million for the IHBG-Competitive program.  

• Establishing guardrails to ensure the administration releases appropriated funding to communities and does not withhold, redirect, or otherwise rescind congressionally approved funding.  

Advocates can take action today by: 

• Emailing or calling members’ offices to tell them about the importance of affordable housing, homelessness, and community development resources to you, your family, your community, or your work. You can use NLIHC’s Take Action page to look up your member offices or call/send an email directly!    

• Sharing stories of those directly impacted by homelessness and housing instability. Storytelling adds emotional weight to your message and can help lawmakers see how their policy decisions impact actual people. Learn about how to tell compelling stories with this resource.     

• Organizations can also join CHCDF’s sign-on letter calling for the highest possible funding for HUD and USDA affordable housing, homelessness, and community development programs in any final FY27 spending bills. Read the letter and sign your organization on here.  

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.