Memo to Members

Take Action to Protect Federal Housing and Homelessness Funding in FY26

Jun 02, 2025

By Kim Johnson, Senior Director of Policy

Advocates can use NLIHC’s fiscal year (FY) 2026 toolkit, “Opposing Cuts to Federal Investments in Affordable Housing,” to urge Congress to protect and expand affordable housing and homelessness resources in the upcoming federal budget.  

On May 2, President Donald Trump released a partial budget request for FY26 that indicated the Administration would pursue a historic 44% cut to HUD funding, including a proposed 43% cut to rental assistance compared to the previous year, and change HUD’s rental assistance programs entirely. The proposal would also cut funding for and restructure the Homelessness Assistance Grants (HAG) program and fully eliminate several other programs that provide vital funding to communities and services to families with low incomes. For additional details, read NLIHC’s analysis. The president’s full budget request is expected to be released in June, as soon as this week. 

The president’s budget request – partial or not – represents the wishes and priorities of the president and his Administration. Only Congress has the authority to determine final funding levels for federal programs. House and Senate appropriators are beginning to draft their own FY26 proposals. Appropriators will need to enact a new budget by October 1, the beginning of FY26.  

Take Action – Tell Congress to reject the Trump Administration’s proposal and invest in the affordable housing, homelessness, and community development resources our communities need!  

The Opposing Cuts to Federal Investments in Affordable Housing toolkit offers information, resources, and strategies for advocates to take action to protect federal investments in affordable housing, homelessness assistance, and community development. The toolkit provides comprehensive information on how to call on Congress to protect and expand affordable housing and homelessness resources in the FY26 budget.  

NLIHC’s FY26 priorities include:  

  • Full funding to renew all existing Housing Choice Voucher (HCV) contracts and funding to renew 60,000 Emergency Housing Vouchers (EHVs).
  • Increased funding for public housing operations and public housing capital needs.
  • $4.922 billion for HUD’s Homeless Assistance Grants (HAG) program.
  • $20 million for the Eviction Protection Grant Program (EPGP).
  • At least $1.3 billion for HUD’s Tribal housing programs and $150 million for competitive funds targeted to Tribes with the greatest needs.  

The toolkit also links to the “Reject Housing Cuts and EHV Funding Cliff: Action Toolkit,” developed in partnership with the Center on Budget and Policy Priorities, the National Alliance to End Homelessness, and the National Housing Law Project to provide additional resources and information on the urgent need for additional funding in FY26 for HCV and EHV renewals.   

National, state, local, Tribal, and territorial organizations can also join over 2,300 organizations on The Campaign for Housing and Community Development Funding (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.