May 20, 2026 — Earlier today, the House Transportation, Housing and Urban Development, and Related Agencies (THUD) subcommittee of the Appropriations subcommittee released a draft version of their fiscal year (FY) 2027 bill. The bill as a whole, including the transportation provisions, includes an allocation of $92.224 billion. This is 10.4% ($10.659 billion) less than the allocation in the FY 2026 enacted budget. The bill will be considered in the House THUD Appropriations subcommittee tomorrow, Thursday, May 21 at 8:00 am Eastern. The markup can be lived-streamed on the Committee’s website.

Summary

The House bill proposes modest increases to the Housing Choice Voucher program renewal account and cuts to the Public Housing program. NAHRO estimates that the increases to the renewal account will not cover the increasing costs of Housing Assistance Payment (HAP) contracts.  Additionally, the cuts to Public Housing Program funding do not meet the full cost of daily operations and annual capital needs for public housing. The budget also includes a small increase to the Project-Based Rental Assistance (PBRA) program; however the bill also includes language that would cap Operating Cost Adjustment Factors (OCAFs) at 3%. The language would also give HUD to ability to provide a smaller OCAF if the Department chooses.

Unlike the president’s budget, the House bill would provide funding to Community Development programs, including CDBG, HOME, and funding for homeless assistance other than Emergency Solutions Grants. The bill would also provide funding for the Family Self-Sufficiency (FSS), the Resident Opportunity and Self-Sufficiency (ROSS) programs, and Jobs Plus.

In a significant victory, the bill would exempt FY 2027 and prior-year funding for HOME, CDBG, Public Housing Operating and Capital Funds, the Self-Help Homeownership Opportunity Program (SHOP), and Native American Programs from Build America, Buy America (BABA) requirements. The legislation also directs HUD to conduct a review of BABA implementation and issue updated guidance within 90 days of publishing the review. In addition, HUD would be required to submit a report to Congress outlining the review’s findings.

Housing Program Allocations

Housing Choice Voucher Program

• Housing Assistance Payment (HAP) Renewal Account – $35.453 billion, which is $496 million more than the FY 2026 enacted amount; the bill also lowers the HAP set-aside from $400 million in FY 2026 to $200 million;
• Administrative Fees – $2.3 billion, which is $536 million less than the FY 2026 enacted amount;
• Tenant Protection Vouchers (TPV) – $300 million, which is $301 million less than the FY 2026 enacted amount; the bill leaves in language allowing some of this funding to be used for Emergency Housing Vouchers;
• Family Unification Program (FUP) / Foster Youth to Independence – $30 million, which will all be allocated to the Melania Trump Foster Youth to Independence program on a non-competitive basis;
• HUD-Veterans Affairs Supportive Housing (HUD-VASH) – the bill does not allocate any funding towards new HUD-VASH vouchers;
• Emergency Housing Vouchers (EHVs) – the bill does not allocate any dedicated funding to support EHV households beyond allowing TPV funding to be used for them.

Public Housing

• Public Housing Operating Fund – $4.687 billion, which is the same amount allocated in FY 2026;
• Public Housing Operating Fund Shortfall – $50 million, which is $287 million less than the amount in FY 2026;
• Public Housing Capital Fund – $2.286 billion, which is $914 million less than the FY 2026 enacted budget;
• Choice Neighborhoods Initiative – the bill does not allocate any funding for Choice Neighborhoods. The program received $25 million in FY 2026.

Self-Sufficiency Programs

• Family Self-Sufficiency Program – $125 million, a $31 million decrease compared to FY 2026 enacted;
• Jobs Plus – $10 million, level with FY 2026 enacted;
• Resident Opportunity and Self-Sufficiency – $40 million, level with FY 2026 enacted.

Community Development Programs

• Homeless Assistance Grants – $4.160 billion, a $257 million decrease compared to FY 2026 enacted; this includes funding for the CoC Program, Emergency Solutions Grants, Youth Homelessness, and the National Homelessness Data Analysis Project;
• HOME Investment Partnerships Program – $500 million, a $750 million decrease compared to FY 2026 enacted;
• Community Development Block Grant – $3.3 billion, level with FY 2026 enacted;
• Economic Development Initiative (earmarks) – $2.522 billion, a decrease of over $1 billion compared to FY 2026 enacted.

NAHRO will provide in-depth details of this bill, including an examination of its policy provisions, next week.

The THUD subcommittee’s press release can be found here.

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