House Appropriations Committee Advances FY 27 T-HUD Bill

Proposed Cuts Spark Partisan Debates on Housing Program Priorities

On June 3, the House Appropriations Committee approved its FY 27 Transportation, Housing and Urban Development and Related Agencies (T-HUD) appropriations bill in a partisan markup hearing, along a party-line vote of 34–27. Committee leadership maintained a generally collegial tone despite policy disagreements.

While proposing less severe cuts than the Administration’s budget request, the legislation includes significant reductions across several HUD programs that remain a concern for PHADA. The bill text and committee summary are available on the Appropriations Committee’s website.

The House bill provides approximately $71.4 billion for HUD, representing a cut of nearly $5.9 billion, or about 8 percent, compared to FY 26 enacted funding levels. For a detailed analysis of the House FY 27 T-HUD bill and a comparison to FY 26 enacted funding levels, see the PHADA’s FY 27  Appropriations Position Paper on page 7 in this edition of the Advocate.

Republicans Emphasize Fiscal Restraint and Funding Priorities

Rep. Tom Cole (R-OK), Chair, Appropriations Committee.

Appropriations Committee Chairman Tom Cole (R-OK) expressed support for advancing the legislation. T-HUD Subcommittee Chairman Steve Womack (R-AR) described the bill as a balanced and responsible funding measure. He highlighted continued funding for Homeless Assistance Grants, Community Development Block Grants (CDBG), the HOME Investment Partnerships Program (HOME), the Self-Help Homeownership Opportunity Program (SHOP), and NeighborWorks America, while stressing the need to work within overall spending constraints.

Republican members generally voiced support for the bill that directs limited federal resources toward core programs. Some members also highlighted provisions they believed would benefit rural communities and improve program administration.

Democrats Raise Concerns Over Housing Affordability and Program Reductions

Rep. Rosa DeLauro (D-CT), Ranking Member, Appropriations Committee.

Appropriations Committee Ranking Member Rosa DeLauro (D-CT) emphasized the importance of bipartisan working relationships but ultimately opposed the bill. She argued that it would make housing less affordable for low-income families by cutting funding for public housing, homelessness assistance, lead-hazard remediation, and affordable housing development.

T-HUD Subcommittee Ranking Member James Clyburn (D-SC) acknowledged the bipartisan work that went into the bill but argued that the measure inadequately addresses rising housing costs and affordability challenges. He raised concerns about reductions to housing counseling and fair housing enforcement activities and warned that state and local governments would face increased pressure to address housing needs with far fewer federal resources.

Democratic members repeatedly cited ongoing housing shortages and rising housing costs, arguing that proposed funding reductions would make it more difficult to address housing shortages, support homeownership, preserve affordable housing, and reduce homelessness. Several members highlighted reductions to the HOME program, housing counseling, fair housing enforcement, and homeless assistance funding. Others emphasized the challenges facing renters, first-time homebuyers, seniors, veterans, and young families amid rising housing costs.

Amendments Highlight Key Policy Differences

The committee adopted a bipartisan manager’s amendment that included several technical and policy changes. Among the housing-related provisions was language directing HUD to conduct a feasibility study on covering security deposits under the Housing Choice Voucher program, an amendment that received bipartisan support.

More contentious, the committee also adopted a Republican en-bloc amendment restricting certain federal funds from being provided to sanctuary jurisdictions, despite strong objections from Democratic members who argued the provision would harm local governments.

Several Democratic amendments seeking to restore funding for housing programs were unsuccessful. One amendment offered by Ranking Member DeLauro would have restored funding for HOME, NeighborWorks America, housing counseling, and eviction prevention programs. Supporters argued these programs are critical tools for addressing the nation’s housing affordability challenges and have historically enjoyed bipartisan support. Opponents contended that the amendment would exceed the committee’s spending allocation and noted that the bill already exceeds the President’s budget request. 

Rep. Mike Quigley (D-IL) also offered an amendment to restore $200 million for the Pathways to Removing Obstacles to Housing (PRO Housing) program, consistent with funding approved by appropriators two years ago. Supporters noted that the program encourages local governments to address zoning and land-use barriers that delay housing development and increase permitting timelines. The amendment was not adopted.

The committee adopted an amendment offered by Rep. Adriano Espaillat (D-NY) addressing HUD-assisted housing access for mixed-status families. “The Committee expects HUD to continue serving mixed-status households that are eligible for assistance under Section 214, unless otherwise changed by law.”

Another notable debate centered on a Democratic amendment from Rep. Debbie Wasserman-Schultz (D-FL) opposing HUD’s proposed public housing and Housing Choice Voucher work requirements and time-limit policies. Supporters argued the proposal could increase housing instability and place vulnerable households at risk of eviction, while opponents pointed to state-level work requirement initiatives and argued that work expectations can promote self-sufficiency. The amendment was not adopted.

Looking Ahead

The committee markup highlighted partisan divides on federal housing policy and funding priorities. While members on both sides of the aisle acknowledged ongoing housing needs, they disagreed on the appropriate level of federal investment and the role of HUD programs in addressing those challenges.

Although House Appropriations Committee approval represents an important milestone, overall FY 27 HUD appropriations remain in the early stages. The Senate has yet to release its proposal, and, as in previous years, the final funding package will likely be shaped by bipartisan negotiations needed to secure 60 votes in that chamber. With the September 30 funding deadline approaching and a limited legislative calendar, Congress may ultimately need to enact a Continuing Resolution (CR) to prevent a government shutdown while appropriations discussions continue.

PHADA expects the Senate to release its T-HUD bill later this summer and will continue advocating for full funding for HUD programs. The Association encourages members to engage with their elected officials and emphasize the importance of providing HAs with the resources needed to serve low-income families and maintain affordable housing in their communities. PHADA will continue to keep members informed as the appropriations process moves forward through the Advocate, Breaking News alerts, social media, and eBlasts.