Final HUD Spending Bill for FY26 Released, Providing Increased Funding to Key HUD Rental and Homelessness Assistance Programs
Jan 20, 2026
By Kim Johnson, NLIHC Senior Director of Policy
Congressional Appropriators released this morning (January 20) the text of a final fiscal year (FY) 2026 spending bill for Transportation, Housing, and Urban Development (THUD) programs. Overall, the bill provides an approximately $7.3 billion increase over the previous fiscal year, for a total of $77.3 billion for HUD programs, plus an additional $6.9 billion in offsetting receipts. 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 the Housing Choice Voucher (HCV) program. This level should be sufficient to ensure the renewal of existing TBRA contracts.
Appropriators also provided about $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.
The Homeless Assistance Grants (HAG) program would receive over $4.4 billion, a $336 million boost from the previous year. The bill also includes language that requires HUD to renew Continuum of Care (CoC) grants expiring in the first quarter of 2026 (January-March) for 12 months, and creates a timeline for HUD to renew expiring grants throughout the year, if HUD has not issued awards under a new Notice of Funding Opportunity (NOFO). Additionally, pursuant to preliminary court order, HUD announced the FY24-25 CoC NOFO is open to process all eligible renewals. More info can be found here.
Appropriators would maintain funding for the Indian Housing Block Grant (IHBG) program, at just over $1.1 billion; however, the bill provided slightly less funding for the IHBG-Competitive program, which received $125 million, a $25 million decrease from the last fiscal year.
The Eviction Protection Grant Program (EPGP) would receive $7.5 million, a drop from the $20 million provided in last year’s bill.
View NLIHC’s updated FY26 budget chart for key HUD programs here, and review the text of the FY26 THUD bill here. NLIHC’s full analysis of the FY26 THUD spending bill will be published soon.
Increased funding in the final FY26 HUD spending bill is thanks to the hard work of advocates around the country, who reached out to their members of Congress to make their voices heard and protect funding for vital HUD programs. 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).
Take Action
With the text of the final bill introduced, the House is expected to pass the THUD bill along with remaining FY26 spending bills this week. The Senate will consider them next week, ahead of the January 30 expiration date for the continuing resolution (CR) currently funding HUD and other federal programs. Without a final spending agreement enacted by January 30, Congress will need to pass another CR, or risk a government shutdown.
Use NLIHC’s toolkits and resources to contact your members of Congress and urge them to pass a final FY26 HUD spending bill with increased funding for HUD’s programs!
NLIHC’s advocacy toolkit, “Opposing Cuts to Federal Investments in Affordable Housing,” includes talking points, advocacy materials, engagement ideas, and more resources for advocates to weigh-in with their members of Congress on the importance of these vital resources!
Email or call 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!
Share 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.