Last FY26 Spending Bill Signed into Law as Appropriators Continue Work on FY27

By Kim Johnson, NLIHC Senior Director of Policy 

The U.S. House of Representatives passed by voice vote and President Donald Trump signed into law the fiscal year (FY) 2026 Department of Homeland Security (DHS) spending bill on April 30, ending a 76-day shutdown of the department and concluding the FY26 appropriations season. 

Funding for DHS lapsed on February 14 after lawmakers were unable to reach an agreement on a final bill following violent actions by DHS sub-agencies, Immigration and Customs Enforcement (ICE) and the Customs and Border Patrol (CBP), in Minneapolis, Maine, and communities across the country. The DHS appropriations bill also provides funding for the Federal Emergency Management Agency (FEMA) to carry out disaster response and recovery efforts. 

NLIHC strongly condemned ICE and CBP for their use of deadly force in vulnerable and marginalized communities, and our Disaster Housing Recovery Coalition (DHRC) urged Congress to avoid letting concerns over FEMA funding stall negotiations over DHS and needed reforms to address abuses of power by ICE and CBP (see Memo, 2/17). The final FY26 spending bill does not include funding for ICE and CBP, after congressional Democrats withheld their support for the final bill until funding for the agencies was removed. The DHRC continues to advocate for the “Fixing Emergency Management for Americans (FEMA) Act,” a bipartisan bill to remove FEMA from DHS and institute common-sense reforms to improve the agency’s programs. Once an independent agency, FEMA has been under DHS since 2003, when the department was created. 

While some conservative Republicans, particularly in the House, objected to enacting a final spending bill without ICE and CBP funding, Republicans are also planning on using a legislative tool called “reconciliation” to provide an additional $70 billion for the agencies (see Memo, 4/27). Reconciliation allows a bill to pass the Senate with a simple majority of 51 votes, rather than the 60 usually required; as a result, if one party controls the House, Senate, and White House, a reconciliation bill can be enacted into law without any support from the minority party. 

Work Continues on FY27 Spending Bills, with House FY27 HUD Spending Bill Expected by May 21

Appropriators have also continued their work on spending bills for the upcoming fiscal year. In the House, the Transportation, Housing and Urban Development (THUD) Appropriations Subcommittee is expected to release their FY27 spending bill for HUD programs by May 21, when the Subcommittee is slated to meet to review and vote on the bill in a process known as a “markup.” While the Senate Appropriations Committee’s markup schedule has not been announced, Committee Chair Susan Collins (R-ME) is aiming to finish markup of all 12 spending bills for FY27 before the end of June. 

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

NLIHC is calling on Congress to 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 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. 

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.