House Appropriators Begin Soliciting Funding and Language Requests for FY26 Community Development Projects, Signaling the Beginning of the FY26 Process

House Appropriations Committee Chair Tom Cole (R-OK) announced on April 2 that his committee would begin accepting programmatic funding and language requests for fiscal year (FY) 2026 community development projects, signaling that appropriators are beginning work on the FY26 appropriations process.  

Months of contentious negotiations delayed a final FY25 spending agreement by almost six months, but lawmakers managed to pass a continuing resolution (CR) on March 14 keeping the federal government funded through September, when the current fiscal year ends (see Memo, 3/17). Congress will need to draft, debate, finalize, and pass an FY26 spending bill before the new fiscal year begins on October 1. President Trump is also expected to release a “skinny” version of his FY26 budget request to Congress before the end of April.  

During his first term, President Trump repeatedly called for massive spending cuts to HUD programs, including deep cuts to the Housing Choice Voucher (HCV) program that, if enacted, would have taken housing assistance away from 200,000 households who rely on their HCV to keep a roof over their heads. The previous Trump Administration also pushed Congress to enact policies that would increase barriers to housing assistance, including work requirements, time limits, and minimum rent increases on HUD-assisted households. However, thanks to advocates and congressional champions who worked tirelessly to protect HCVs and other vital HUD programs, these proposed cuts and policy changes were never enacted. NLIHC is expecting these threats to be raised again as FY26 negotiations take shape.  

Additional funding is needed for the Emergency Housing Voucher program  

In addition to the need for increased funding in FY26 to cover the cost of HCV renewals, Congress will need to provide funding to ensure the 60,000 households who receive an Emergency Housing Voucher (EHV) do not lose their assistance. The EHV program was created in the “American Rescue Plan Act of 2021,” which provided $5 billion for 60,000 new tenant-based rental assistance vouchers specifically targeted to people experiencing or at immediate risk of homelessness, including people escaping intimate partner violence. The EHV program mandates that public housing authorities (PHAs), which are responsible for administering the program, work with their local Continuums of Care (CoCs) to identify people and families at risk of or experiencing homelessness and connect them to an EHV, plus wrap-around services when needed, for long-term housing stability.  

The EHV program is extremely successful, helping almost 60,000 people and families – particularly families with children – find and maintain stable housing. While funding for the program was originally slated to last until 2030, the rapid increase in the cost of rent over the last four years has caused funding to run out much more quickly than expected. Unless additional funding is allocated by Congress, HUD estimates that EHV funding will likely run out in 2026.   

As Congress beings their work on FY26, NLIHC will continue to monitor developments and provide updated materials for advocates to take action and demand increased funding for HUD’s vital programs in any final FY26 spending bill.