By: Gabriel Smith, Legislative Affairs Manager

June 22, 2026 — Congress is moving a rare bipartisan housing package while also making decisions about the FY 2027 funding levels that will determine what housing agencies and local governments can actually deliver. NAHRO will continue working with Congress, HUD, and our members to support workable policy, adequate funding, and implementation that recognizes the realities facing local housing providers and the residents they serve

At a Glance

• The Senate is scheduled to vote this evening on the 21st Century ROAD to Housing Act.
• If the Senate passes the bill with additional changes, it must return to the House before it can be sent to the President.
• The House FY 2027 Transportation-HUD appropriations bill has cleared committee, but the Senate has not yet released its version.
• The congressional calendar is narrowing as lawmakers approach summer work periods and the election-year schedule.
• NAHRO continues to monitor a proposed OMB grants rule that could affect federal financial assistance programs.

Senate Set to Vote on 21st Century ROAD to Housing Act

The Senate is scheduled to vote this evening on the 21st Century ROAD to Housing Act, a broad bipartisan housing package that could improve the environment for HUD programs to operate.

For NAHRO members, the bill includes reforms to the HOME Investment Partnerships Program, expanded authority to use Community Development Block Grant funds for affordable housing construction, environmental review streamlining, rural housing program reforms, voucher inspection changes, and a new Moving to Work cohort.

Of particular interest to public housing agencies, the bill would create a new “Economic Opportunity and Pathways to Independence Cohort” under the Moving to Work demonstration. NAHRO is encouraged to see Congress recognize the value of MTW flexibility and the role local housing agencies can play in testing approaches that better meet community needs.

At the same time, NAHRO remains concerned about new MTW reporting and oversight requirements included in the bill. Accountability and evaluation are important, but new requirements should be implemented in a way that does not create unnecessary administrative burden for agencies already operating with limited staff capacity and constrained federal resources.

FY 2027 THUD Appropriations in Full Swing

While the 21st Century ROAD to Housing Act is an important authorizing package, the annual appropriations process remains the central funding debate for housing agencies and community development programs.

The House Appropriations Committee approved its FY 2027 Transportation-HUD appropriations bill earlier this month. Key items for NAHRO members include $38.1 billion for Tenant-Based Rental Assistance; an increase for Project-Based Rental Assistance; reduced funding for the Public Housing Fund; level funding for Community Development Block Grants; $500 million for HOME; and reductions for Homeless Assistance Grants and fair housing activities.

The Senate is expected to release its FY 2027 THUD bill next, and from there both the House and Senate are expected to work towards a negotiated bipartisan funding bill.

OMB Proposed Grants Rule Remains on the Radar

NAHRO is monitoring a proposed rule from the Office of Management and Budget that would revise government-wide rules for federal financial assistance. The proposal could affect how federal agencies design, review, award, suspend, and oversee grants and other forms of federal assistance. For housing agencies and local governments, the rule is worth close attention because HUD programs depend on predictable, transparent, and workable federal grant requirements.

Congressional Calendar Narrowing

The calendar is becoming increasingly important. Congress is approaching summer work periods, and campaign season will have lawmakers back in their districts. This is the right time for NAHRO members to reach out to lawmakers with specific local examples of how funding levels affect voucher utilization, public housing operations, capital needs, redevelopment plans, resident services, and local housing supply.

Members should also consider inviting congressional staff to visit local developments, meet residents, see capital needs firsthand, and learn how federal housing programs are implemented at the community level.

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