Senate Democrats Gauge Support for Three-Bill Spending Package that Would Include HUD FY26 Funding—Take Action!

By Kim Johnson, NLIHC Senior Director of Policy  

Despite the impasse around a temporary measure to fund federal programs and services, Senate Democrats are reportedly gauging members’ support for a three-bill spending package that would include the fiscal year (FY) 2026 spending bill for Transportation, Housing and Urban Development (THUD) programs. With the end of the year quickly approaching, members of the Senate are laying the groundwork to move FY26 spending bills quickly after the government shutdown ends.  

The Senate Appropriations Committee passed its FY26 THUD spending bill by a vote of 27-1 in July. The bill would provide $73.3 billion for HUD programs, significantly more than the $67.8 billion provided for HUD in the House FY26 spending bill. Still, the Senate’s bill does not provide sufficient funding to ensure renewal of all existing Housing Choice Vouchers (HCVs) or Emergency Housing Vouchers (EHVs). Without sufficient funding, vouchers will be lost through attrition—when a household no longer needs their voucher, the voucher cannot be reissued to a new family because it is no longer attached to funding. When renewal funding is insufficient—or when funding is cut—households who rely on a voucher to keep a roof over their heads actively lose their rental assistance, putting them at risk for housing instability, eviction, and in the worst cases, homelessness.  

At current funding levels, over 2.4 million households receive rental assistance, accounting for just one in four households who qualify. Under the House FY26 spending bill, an estimated 181,900 fewer households would be served; in the Senate, 107,800 fewer households would receive rental assistance. The loss of these vouchers would disproportionately affect older adults, people with disabilities, and families with children. 

Need for CoC Funding Extension  

In addition to increased voucher funding, Congress must seize this or any opportunity to extend current grant awards for HUD’s Continuum of Care (CoC) program for an additional year. CoC grants provide vital resources to communities to help respond to the needs of people experiencing homelessness. Last year, communities engaged in a planning process for a two-year grant cycle for CoC funding, but in July HUD unexpectedly announced it would issue a new CoC Notice of Funding Opportunity (NOFO) for FY25. This new NOFO has still not been released; with the ongoing government shutdown compounding the already significant delay, there is concern that releasing the FY25 NOFO will slow down or pause the CoC funding communities rely on to prevent and end homelessness.  

Learn more about the impact HUD’s potential FY25 CoC NOFO will have on states and communities at the National Alliance to End Homelessness website.  

Bipartisan Support for Federal Housing and Homelessness Investments  

Bipartisan support continues for increased funding for the vital affordable housing, homelessness, and community development funding HUD programs provide to communities.  

Representatives Andrew Garbarino (R-NY) and Nick LaLota (R-NY) led an October 28 sign-on letter with 20 of their Republican colleagues in the House addressed to HUD Secretary Scott Turner, asking the secretary to “renew all existing Continuum of Care (CoC) grants expiring in calendar year 2026 for one additional 12-month period.” The lawmakers note that the extension “is essential to prevent service disruptions for individuals and families experiencing homelessness, sustain continuity of care for vulnerable populations, and allow HUD adequate time to implement its next generation of homelessness policy reforms.” 

In a recent joint op-ed, democratic Mayor Todd Gloria of San Diego, California, and Republican Mayor Mark Freeman of Mesa, Arizona, voiced their bipartisan support for continued funding for the EHV program to ensure current recipients do not lose the assistance they rely on for a safe, stable home.  

“In cities across America, we share a simple truth: offering a hand to those most in need isn’t a red issue or a blue issue, it’s a community issue,” the mayors stated. “Supporting programs like emergency housing vouchers is a practical way to strengthen our communities. Stable housing for seniors, veterans, and families reflects a commonsense principle: when we give people security, they contribute back to the neighborhoods they call home. Washington should see this not as a partisan issue but as an opportunity to preserve the strength of families and honor those who have given so much.”  

Take Action 

Use NLIHC’s toolkits and resources to take action on FY26 funding, including by:   

• Using NLIHC’s advocacy toolkit, “Opposing Cuts to Federal Investments in Affordable Housing,” to call on Congress to protect and expand affordable housing and homelessness resources, including NLIHC’s priorities:   

  • Full funding to renew all existing tenant-based voucher contracts, to ensure the people and families who rely on an HCV or EHV to keep a roof over their heads do not lose their assistance. Check out the “EHV Funding Cliff Mobilization Toolkit” for more information, including talking points and resources.  

  • $4.922 billion for HUD’s Homeless Assistance Grants (HAG) program, and for HUD to stick to its commitment to a two-year Notice of Funding Opportunity (NOFO) for the Continuum of Care Program.  

  • $5.7 billion for public housing operations, and at least $5 billion to address public housing capital needs.   

  • $15 million for the Eviction Protection Grant Program (EPGP), as provided in the Senate’s spending bill.  

  • At least $1.3 billion for HUD’s Indian Housing Block Grant (IHBG) program and $150 million for IHBG-Competitive funds, targeted to Tribes with the greatest needs.   

The toolkit 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!     

• 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.   

National, state, local, Tribal, and territorial organizations can also join over 2,800 organizations on CHCDF’s national letter calling on Congress to support the highest level of funding possible for affordable housing, homelessness, and community development resources in FY26.    

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.