By: Gabriel Smith, Legislative Affairs Manager

June 16, 2026

The House Appropriations Committee advanced its FY 2027 Transportation, Housing and Urban Development, and Related Agencies (THUD) appropriations bill, marking the House’s initial funding position in this year’s appropriations process. The Senate is working on their version of the funding bill ahead of negotiations with the House.

At the same time, the House-passed 21st Century ROAD to Housing Act is still in process in the Senate, where additional action is needed before the bipartisan housing package can be sent to President Trump for final passage of the massive housing package.

For PHAs, redevelopment agencies, local governments, and community development leaders, this is an important advocacy window. Use NAHRO’s Action Alert Center to write, call, or send a 1–5 minute video to your members of Congress about how HUD programs and funding are working in your community.

At a Glance

• The House Appropriations Committee approved its FY 2027 THUD bill on June 3 by a 34–27 vote.
• The bill includes a total THUD allocation of $92.224 billion, which is $10.659 billion, or 10.4 percent, below FY 2026 enacted.
• NAHRO’s initial analysis identifies concerns around voucher renewal sufficiency, HCV administrative fees, Public Housing Capital Fund levels, HOME funding, and PBRA operating cost language.
• The House passed the amended 21st Century ROAD to Housing Act by a bipartisan 396–13 vote on May 20.
• The Senate must act on the House-amended housing package before the legislation can move toward final enactment.

The DC Read

The House FY 2027 THUD bill is not final, but it is now the House’s clearest HUD funding marker. The bill avoids some of the deepest reductions proposed in the President’s budget request, but several program areas remain a concern for PHAs and community development agencies.

Key program levels 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 notable policy language. NAHRO has flagged the proposed cap on PBRA Operating Cost Adjustment Factors at 3 percent, as well as 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.

Why It Matters Locally

Appropriations decisions made in Washington shape local housing outcomes. The THUD bill affects voucher utilization, HCV administrative operations, public housing maintenance and preservation, community development planning, resident services, redevelopment pipelines, and local housing production.

The House bill still must move through the House floor, the Senate process, and eventual House-Senate negotiations. That means there is still time for housing leaders to shape the conversation.

Housing Legislation Also Remains Active

Separate from appropriations, the House passed the amended 21st Century ROAD to Housing Act by a bipartisan 396–13 vote. Because the House amended the Senate-passed package, the Senate must act again before the bill can head to the White House for the President’s signature.

For NAHRO members, the package remains important because it includes provisions connected to housing supply, preservation, rental assistance administration, HOME, CDBG, environmental review, rural housing, manufactured housing, and local implementation.

Urge your senators to support final action on the House-amended 21st Century ROAD to Housing Act, give them a call through NAHRO’s Action Alert Center, and be sure to use the provided call-in script.

What NAHRO Members Can Do

This is a key 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 daily program operations, landlord participation, inspections, leasing, 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.
• Urge Senate action on the House-amended 21st Century ROAD to Housing Act.

What This Means

Congress is making decisions that will shape FY 2027 HUD funding and the next phase of federal housing policy. The House THUD bill is an important marker, but it is not the final word.

For NAHRO members, this is the moment to stay engaged, share local impacts, and keep the focus on what federal funding and policy mean for residents, staff, landlords, and communities.

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