On May 21, the House Transportation, HUD, and Related Agencies (T-HUD) Appropriations subcommittee advanced the chamber’s FY 27 T-HUD appropriations bill to the full Appropriations Committee. The subcommittee vote was 9–7 on a party-line basis, with all Republicans voting in favor and all Democrats opposed. The House Appropriations Committee had released the bill text the day prior to the markup hearing. The bill includes $71.4 billion in funding for HUD programs—nearly $6 billion (8 percent) less than was enacted in FY 26. Both the bill text and a summary are available on the Appropriations Committee’s website.
Article Summary
- On May 21, the House Transportation, HUD, and Related Agencies (T-HUD) subcommittee advanced its FY 27 funding bill to the full Appropriations Committee following a largely collegial mark-up hearing.
- The bill proposes deep cuts to core HA programs, with reductions of 29% and 20%, respectively, for public housing capital and voucher admin fee funding.
- However, the bill rejects some of the harmful funding cuts and policy proposals that were included in the Administration’s budget request, and the bill also includes language that would exempt many affordable housing programs from Build America, Buy America regulations.
- PHADA will continue to advocate for maximum funding for HUD programs, and the Association encourages members to contact their elected officials to support full funding.
Harmful Cuts to Crucial HA Programs, Including Public Housing and HCV Admin Fees
For core HUD programs, the bill proposes:
- Public Housing Operating Fund: $4.687 billion, which represents flat funding compared to FY 26 enacted levels. However, the House has only proposed $50 million in public housing shortfall funding, while the FY 26 enacted level was $337 million.
- Public Housing Capital Fund: $2.286 billion, a decrease of nearly 29 percent compared to the $3.2 billion that was enacted in FY 26.
- Housing Choice Voucher (HCV) Contract Renewals: $35.453 billion, a modest 1.4 percent increase compared to FY 26 levels.
- HCV Admin Fees: $2.270 billion, a 20% decrease relative to FY 26 enacted levels.
If enacted, the cuts proposed in the House bill would imperil many low-income families’ housing security. Lower public housing funding—especially given rising costs and increasing policy mandates—would challenge HAs to provide safe and decent housing to seniors, the disabled, veterans, and other vulnerable populations. Further, cuts to admin fees would result in fewer families served and lower levels of landlord customer service.
Bill Reverses Administration’s Proposed Cuts, Excludes Harmful Funding Provisions, and Provides BABA Relief
Outside of core HA programs, the House has reversed many of the funding eliminations that the White House budget request included. In doing so, the House T-HUD bill includes:
- Level funding for the Community Development Block Grant (CDBG) program.
- A modest $500 million in funding for the HOME Investment Partnerships Program.
- Flat funding for the Resident Opportunities and Self-Sufficiency (ROSS) and Jobs-Plus programs, and $125 million for the Family Self-Sufficiency Program.
On the other hand, the House has not included funding for the Choice Neighborhoods Initiative, which was similarly eliminated in the White House budget request.
The bill does not include many of the harmful policy provisions included in the White House budget request. Most notably, the House has rejected the Administration’s FY 27 proposals prohibiting HAs from issuing vouchers and allowing HUD to not provide rent adjustments to multifamily properties
The House bill also includes several PHADA-supported policy provisions, including:
- Prohibiting HUD from issuing a solicitation similar to its prior, misguided efforts to change the Project-Based Contract Administrator (PBCA) program.
- Eliminating the cap on the number of public housing units that can be converted through the Rental Assistance Demonstration (RAD).
- Barring HUD from using its poorly conceived Family Achievement Metrics (FAM scores) to determine FSS funding levels.
The House has also included language that exempts projects receiving public housing, community development (including HOME), and Self-Help Homeownership Funding from complying with Build America, Buy America (BABA) requirements. This exemption has long been a key PHADA policy goal, and the Association will advocate for this language to be included in any final FY 27 funding bill.
T-HUD Subcommittee Advances Bill on Party-Line Vote
The House T-HUD Appropriations Subcommittee held a largely collegial markup hearing on May 21, and a recording is available on the Appropriations Committee’s website. At the conclusion of the hearing, the T-HUD Subcommittee voted to advance the bill to the full Appropriations Committee, which has scheduled its respective mark-up hearing for June 4, 2026.
PHADA expects the Senate to release its T-HUD funding bill later in the summer. As in prior years, enacted FY 27 T-HUD appropriations will, in all likelihood, closely resemble the Senate bill, as the 60-vote threshold in the Senate mandates bipartisan cooperation. PHADA will keep members updated regarding all the latest appropriations news through the Advocate, Breaking News, social media, and eBlasts.
While the House’s proposed cuts are unlikely to be reflected in the final FY 27 appropriations bill, PHADA will continue to advocate for maximum HUD funding and for Congress to reject these devastating cuts. The Association encourages members to contact their elected officials to advocate for maximum funding in line with PHADA and our industry partners’ funding recommendations.
