Senate Releases Text of Continuing Resolution Funding Federal Programs Through December 11 and Delaying Implementation of Harmful OMB Proposal
Aug 03, 2026
By Kim Johnson, NLIHC Senior Director of Policy
Senate lawmakers released on August 2 the text of a bipartisan continuing resolution (CR) extending funding for federal programs and services through December 11, and delaying implementation through the duration of the CR 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 am pleased that this bipartisan agreement prevents the Office of Management and Budget’s proposed rule regarding federal financial assistance from taking effect,” said Senate Appropriations Chair Susan Collins (R-ME) in a statement after the CR’s release. 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 bill also includes other “anomalies,” additional funding or policy adjustments for programs that require a short-term boost during a CR to maintain operation. The CR would provide additional disaster relief funding under the Federal Emergency Management Agency (FEMA), and includes language allowing Public Housing Authorities (PHAs) to repurpose unobligated Tenant-Based Rental Assistance (TBRA) funding to cover costs for households with expiring vouchers, including households with an Emergency Housing Voucher (EHV), through the rest of calendar year 2026. The bill would also extend the availability of some homeless assistance and fair housing grants that would have otherwise expired. However, the bill does not include language curbing the Trump Administration’s ability to rescind congressionally approved spending, a provision sought by Senate Appropriations Vice Chair Patty Murray (D-WA) and supported by NLIHC.
The Senate is scheduled to break for August Recess from August 7-September 14, so a vote on the CR is expected before the end of the week. While the House already passed a CR before leaving for recess (see Memo, 7/27), changes to the text made in the Senate require the bill to go back to the House for consideration when representatives return from their recess on August 31.
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), which communities 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.