Senate Considering Language in Continuing Resolution to Block Harmful OMB Proposal Before Adjourning for Recess
Aug 03, 2026
By Kim Johnson, NLIHC Senior Policy Director
The Senate is expected to soon release the text of a continuing resolution (CR) that would likely extend funding for federal programs and services until December 4 and include “anomalies,” additional funding for programs that require a short-term boost during a CR to maintain operations. The Senate CR may also include language blocking the implementation of a harmful proposed rule from the Office of Management and Budget (OMB) that would make significant changes to the federal grant process (see Memo, 6/29). NLIHC strongly opposes the rule and is particularly concerned about how, if finalized, the proposed changes would impact federal housing programs (see Memo, 7/20).
“I have made very clear that I oppose the new rule, so I hope we’ll take advantage of this opportunity to delay it,” said Senate Appropriations Chair Susan Collins (R-ME) last week. Chair Collins and all Senate Democrats have expressed opposition to the rule (see Memo, 7/13); Senator Lisa Murkowski (R-AK) also recently came out against the proposal, noting strong opposition from her constituents, and particularly Tribal organizations, community leaders, and nonprofits. Over 496,800 comments were submitted during the proposal’s comment period, and an analysis of a sample of posted comments found about 95% opposed the rulemaking.
The Senate is scheduled to break for August Recess from August 7 to September 14. If the CR passes the Senate this week, it will be sent back to the House for consideration when the House returns from recess on August 31.
Needed Housing Anomalies for a CR
In addition to language blocking the implementation of the OMB proposal, to ensure vital rental and homelessness assistance continues reaching the people who rely on it, NLIHC urges the Senate to include the following provisions in a CR:
- Limit harm to people served by homelessness programs by including language to noncompetitively renew fiscal year (FY) 2026 Continuum of Care (CoC) funding if HUD does not lawfully award funds by December 1, 2026. HUD’s most recent Notice of Funding Opportunity (NOFO) for the FY26 CoC program would result in an estimated 97,000 people who had previously been experiencing homelessness losing the assistance they rely on for a stable home, putting them at risk of being pushed back into homelessness. The requested language would limit funding gaps and service disruptions.
Prevent over 44,000 households from losing assistance by including language explicitly directing HUD to issue Tenant Protection Vouchers (TPVs) for all households with Emergency Housing Vouchers (EHVs) by the end of the calendar year. The EHV program, created in the “American Rescue Plan Act,” funded new vouchers targeted to people experiencing or at risk of homelessness, as well as survivors of domestic violence, dating violence, sexual assault, stalking, or human trafficking. More than 44,000 households still rely on an EHV to afford the cost of rent, but the program is expected to run out of funding by the end of 2026. While we believe Congress provided a long-term solution in the final FY26 THUD bill, it appears HUD will implement the language in a way that only delays the funding cliff by a few months; the requested language would ensure HUD issues guidance that provides EHV households with longer-term assistance.
Prevent funding shortfalls for housing vouchers by providing additional resources. The White House’s list of anomalies includes a request for additional funding authority to allow Public Housing Authorities (PHAs) to “use unobligated carryover funding for the purpose of addressing funding shortfalls and maintaining current services.” Giving PHAs the ability to move resources away from one account to cover another could fail to actually solve the problem—for example, this language would allow PHAs to use TPV funding to help cover shortfalls instead of using that funding to continue serving EHV holders, which would still leave EHV holders without assistance before the end of the year. PHAs should not have to cover shortfalls in one program at the expense of another, when Congress could include additional funding to ensure all programs are adequately covered.
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:
Providing at least $45.6 billion for Tenant-Based Rental Assistance (TBRA) programs, which would be enough to ensure all current TBRA contracts are renewed, and that the more than 40,000 households still served by an Emergency Housing Voucher (EHV) continue to receive rental assistance.
Investing at least $5.1 billion in HUD’s Homeless Assistance Grants (HAG) program and including language in the final FY27 spending bill protecting funding for Continuum of Care (CoC) programs so they are not destabilized by potential changes from the administration.
Fully funding the Public Housing Operating Fund at the full, formula-determined need, plus $598 million to address the cumulative shortfall in Public Housing operations reported in FY25, and providing increased funding for the Public Housing Capital Fund to begin addressing the capital needs backlog in Public Housing.
Investing in accessible, affordable homes for older adults and people with disabilities by fully renewing all existing Project-Based Rental Assistance (PBRA) contracts and Project Rental Assistance Contracts (PRACs) and expanding funding for the Section 202 Housing for the Elderly and Section 811 Housing for Persons with Disabilities programs.
Providing at least $15 million for HUD’s Eviction Protection Grant Program (EPGP), funding community grants to establish right to counsel and other programs that help people avoid eviction and remain housed.
At least maintaining funding of $1.1 billion for the Indian Housing Block Grant (IHBG) program and increasing funding for the IHBG-Competitive program to $150 million, targeted to Tribal communities with the most urgent housing needs.
Establishing guardrails to ensure the administration releases appropriated funding to communities and does not withhold, redirect, limit, or otherwise rescind congressionally approved funding.
Advocates can take action today by:
- Using NLIHC’s updated August Recess Advocacy Toolkit to learn how to schedule an in-district meeting, plan a site visit, and engage with your members of Congress while they’re in their home states and districts for August Recess!
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!
Using the National Council of Nonprofits’ tool to email your members of Congress and urge them to block implementation of OMB’s proposed rule.
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.