By: Gabriel Smith, Legislative Affairs Manager

June 29, 2026

Congress is entering the July state and district work period after a busy stretch for housing and community development policy. First, the bipartisan 21st Century ROAD to Housing Act has cleared Congress and is now awaiting presidential action.

At the same time, FY 2027 appropriations work continues. The House advanced its FY 2027 THUD funding bill through committee, while the Senate has not yet released its FY 2027 THUD bill. That means the funding debate for HUD programs is ongoing.

At a Glance

• Congress struck a deal to pass the 21st Century ROAD to Housing Act, it now awaits presidential action.
• The Senate passed the final 21st Cent. ROAD Act package on June 22 by a 85–5 vote; the House followed on June 23 by 358–32 vote.
• The House Appropriations Committee approved its FY 2027 THUD bill earlier this month by a 34–27 vote.
• NAHRO remains concerned about HCV renewal sufficiency, HCV administrative fees, Public Housing Capital Fund levels, HOME funding, and PBRA operating cost language in the House THUD bill.
• The Senate is in a state work period from June 29 through July 10, creating an important window for local engagement and advocacy.

The DC Read

The 21st Century ROAD to Housing Act remains the major housing story in Washington. After months of House and Senate negotiations, the bill cleared Congress last week and is awaiting presidential action.

For NAHRO members, the bill is important because it reflects bipartisan recognition that communities need practical housing tools. The final package includes provisions related to housing supply, preservation, HUD program administration, manufactured housing, rural housing, environmental review, and housing finance.

While the ROAD Act will not solve every housing challenge, it represents a rare bipartisan housing package at a time when supply, affordability, preservation, and program delivery remain central concerns for local agencies.

FY 2027 THUD Appropriations

Appropriations remain the next major issue for PHAs and community development agencies. The House Appropriations Committee has approved its FY 2027 THUD bill, but the bill still must move through the House floor, the Senate process, and eventual House-Senate negotiations.

The House bill includes a total THUD allocation of $92.224 billion, which is $10.659 billion, or 10.4 percent, below FY 2026 enacted.

Key NAHRO concerns include:

• Housing Choice Voucher HAP renewals: $35.453 billion, $496 million above FY 2026 enacted. However, NAHRO estimates this increase would not cover rising HAP contract costs.
• HCV administrative fees: $2.3 billion, $536 million below FY 2026 enacted.
• Public Housing Operating Fund: $4.687 billion, level with FY 2026 enacted.
• Public Housing Capital Fund: $2.286 billion, $914 million below FY 2026 enacted.
• CDBG: $3.3 billion, level with FY 2026 enacted.
• HOME: $500 million, $750 million below FY 2026 enacted.

The bill also includes policy language NAHRO is watching closely, including a proposed 3 percent cap on PBRA Operating Cost Adjustment Factors and Build America, Buy America language that would exempt FY 2027 and prior-year funding for HOME, CDBG, Public Housing Operating and Capital Funds, SHOP, and Native American Programs from BABA requirements.

Disaster Recovery Remains on the Radar

Housing and community development oversight also remains active. The House Financial Services Subcommittee on Housing and Insurance recently examined local needs in disaster recovery, including the role of HUD’s Community Development Block Grant Disaster Recovery program.

NAHRO members should continue watching CDBG-DR discussions, particularly as Congress considers how to improve disaster recovery timing, flexibility, and local implementation.

What NAHRO Members Can Do

The July state and district work period is an important advocacy window. NAHRO members should:

• Contact House and Senate offices about the importance of strong FY 2027 HUD funding.
• Share local examples showing how HUD resources support residents, landlords, preservation, redevelopment, and community stability.
• Explain what HCV administrative fees mean for inspections, leasing, landlord engagement, recertifications, and resident communication.
• Tell members of Congress how Public Housing Capital Fund reductions affect maintenance, modernization, health and safety work, and long-term preservation.
• Reinforce the importance of CDBG and HOME as flexible tools for local housing and community development needs.
• Invite district or state staff to tour properties, meet residents, and see federal housing programs in action.

What This Means

Congress has made major progress on housing legislation, but the funding debate is far from over. The ROAD Act is awaiting presidential action, while FY 2027 HUD funding decisions remain ahead.

For NAHRO members, the July state and district work period is an opportunity to keep local housing needs in front of Congress before lawmakers return to Washington for the next phase of appropriations work.

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