by Gabriel Smith, Legislative Affairs Manager

May 18, 2026 — Washington enters an important week for federal housing and community development policy. Following HUD Secretary Scott Turner’s FY 2027 budget testimony before House and Senate appropriators last week, Congress enters the next phase of the appropriations process: turning budget proposals into funding bills.

At the same time, housing legislation remains active on Capitol Hill, as the House considers its approach to the 21st Century ROAD to Housing Act, a bill passed by the Senate earlier this spring.

At a Glance

• FY 2027 THUD appropriations move forward this week. The House THUD Subcommittee is scheduled to mark up its FY 2027 Transportation, Housing and Urban Development, and Related Agencies bill on Thursday, May 21 at 8:00 a.m. ET.
• HUD’s FY 2027 budget request remains under congressional review. Secretary Turner testified before the House THUD Subcommittee on May 12 and the Senate THUD Subcommittee on May 14.
• The President’s budget request is not the final funding bill. Congress will determine final FY 2027 funding levels through the appropriations process. “The President Proposes, Congress Disposes.”
• Housing legislation remains in motion. House Financial Services Committee Chairman French Hill released a statement on a House amendment to the Senate-passed 21st Century ROAD to Housing Act on May 14.

The View from D.C.

The immediate focus for PHAs and local housing leaders is appropriations. The administration’s FY 2027 HUD budget request sets out the White House’s funding and policy priorities, but Congress will decide the final funding levels for HUD programs.

That distinction matters. The House THUD markup scheduled for this week will be one of the first major public steps in shaping the House position on HUD funding for FY 2027. The bill may provide early signals on congressional priorities for public housing, Housing Choice Vouchers, community development, homelessness assistance, resident services, and HUD administrative capacity.

What PHAs Should Watch This Week

As the funding discussion shifts, pay attention to:

• Housing Choice Voucher renewal funding and administrative fees;
• Public Housing Operating Fund and Capital Fund levels;
• HOME and CDBG funding;
• Homelessness assistance programs;
• Resident services and self-sufficiency programs;
• Any policy riders or program changes included in the bill; and
• How members describe local housing needs, program performance, and federal housing investments during markup.

Why It Matters Locally

For PHAs, this week is not just about DC’s process. The funding levels and policy language developed through the THUD bill will affect local operating capacity, voucher utilization, property maintenance, redevelopment planning, landlord engagement, resident services, and community development partnerships.

Appropriations decisions made in Washington directly shape what communities can do on the ground and what tools are available to you to provide safe and affordable homes.

21st Century ROAD to Housing Still in Play

In addition to appropriations, the House is considering its path forward on the 21st Century ROAD to Housing Act after the Senate passed a bipartisan housing package earlier this year. The House Financial Services Committee has described the House amendment as a bipartisan product shaped by member and stakeholder feedback. NAHRO has submitted the following statement in support of the House version of the bill:

“NAHRO strongly supports passage of the House amended version of the 21st Century ROAD to Housing
Act. This historic, bipartisan legislation would strengthen the federal housing and community
development framework, improve program administration, preserve critical local flexibility, and give
housing leaders better tools to expand access to safe and affordable homes. NAHRO urges the House to
pass this important bill and help communities make the maximum impact for the families they serve.”

Mark Thiele, NAHRO CEO

NAHRO members should continue watching how the package develops, particularly provisions related to housing supply, preservation, HUD program administration, rural housing, rental assistance, and community development.

NAHRO members can submit a quick letter to the House of Representatives encouraging them to pass the House amendment of the bill here. Send a Letter to your Rep.

What NAHRO Members Can Do

NAHRO members can help ensure Congress hears directly from local housing and community development leaders as FY 2027 funding decisions move forward.

Members should:

• Contact their House members through NAHRO’s Action Alert Center;
• Share local examples that show how HUD funding supports residents, landlords, redevelopment, preservation, and community stability;
• Explain what funding levels mean locally for lease-ups, inspections, maintenance, waitlists, resident services, and development pipelines; and
• Keep the message practical, local, and focused on implementation.

Bottom Line

This is a big week for federal housing policy. The Trump administration has released its FY 2027 HUD priorities, but Congress now begins the work of determining what HUD funding will actually look like.

NAHRO members should stay engaged, keep local impacts front and center, and continue making the case for resources that allow PHAs and community development agencies to continue to serve their communities responsibly.

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