Congress Returns from Spring Recess to Begin Drafting FY27 Spending Bills

By Kim Johnson, NLIHC Senior Director of Policy and Alayna Calabro, NLIHC Senior Policy Analyst  

Members of Congress will return to their offices in Washington, D.C. this week after a two-week spring recess. With the release of the Trump administration’s fiscal year (FY) 2027 spending request (see Memo, 4/6), members of the House and Senate Appropriations Committees will begin drafting their spending bills for the upcoming fiscal year. Appropriators are charged with drafting 12 annual spending bills for federal programs—including the Transportation, Housing and Urban Development (THUD) bill that funds HUD’s vital affordable housing, homelessness, and community development programs—before October 1, the beginning of the new federal fiscal year.  

Appropriators will also meet with members of the Trump administration in a series of congressional hearings on the president’s FY27 budget request, during which cabinet secretaries will be asked about the rationale and justification behind the administration’s spending proposals. Hearings will begin this week in the House, but the budget hearing for HUD Secretary Scott Turner has yet to be scheduled. The House THUD Appropriations Subcommittee is expected to hold a review of their draft FY27 spending bill—known as a “markup”—on May 21, with a full committee markup potentially scheduled for June 4. While these dates may change as the House’s schedule is finalized, the House’s FY27 THUD spending bill will need to be released in advance of the subcommittee markup. The Senate has yet to release a potential markup schedule.  

Proposal in the Administration’s VA Budget Request for “National Center for Warrior Independence”  

In addition to the significant cuts and policy changes to HUD’s affordable housing, homelessness, and community development programs proposed in the Trump administration’s FY27 HUD spending bill, the administration includes a proposal in its FY27 budget request for the Department of Veterans Affairs (VA) to fund the construction of a “National Center for Warrior Independence” in Los Angeles, CA. According to a May 2025 Executive Order calling for its creation, the center would "work to restore self-sufficiency and the warrior ethos among homeless veterans through any guidance, requirements, or services needed to ensure that homeless veterans can access housing, receive substance abuse or addiction treatment, and return to productive work and community engagement.”  

VA homelessness assistance programs, including Supportive Services for Veteran Families (SSVF) and HUD-Veterans Affairs Supportive Housing (HUD-VASH) programs, have been considered the gold standard for homelessness programs both domestically and abroad. These programs, which emphasize access to low-barrier, permanent housing with voluntary supportive services, have been instrumental in reducing veteran homelessness by 50% over the past decade. As planned, the “National Center for Warrior Independence” would move away from this successful model and towards shorter-term housing and mandated services proven to be less effective at ending homelessness and helping people obtain long-term stability.  

Take Action: Tell Congress to Provide the Highest Possible Funding for Affordable Housing and Homelessness Programs in FY27!  

NLIHC is calling on Congress to once again reject funding cuts and harmful policy changes proposed in the White House’s budget request, and instead provide the highest possible funding for HUD’s affordable housing, homelessness, and community development programs, including for NLIHC’s top priorities:  

• Full funding to renew all existing Housing Choice Voucher (HCV) 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 PRA and PRAC 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.  

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.     

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.