Critical Programs at Risk From Proposed Cuts
Over the weekend, the House Transportation, Housing and Urban Development (T-HUD) Appropriations Subcommittee released its draft FY 26 appropriations bill. There is a summary that can be reviewed here. The subcommittee markup is scheduled for later today.
This release represents the beginning of Congress’s role in the annual appropriations process. The bill must still pass through the full House Appropriations Committee, and the Senate is expected to release its FY 26 T-HUD bill in the coming weeks. Earlier this year, the President released the administration’s recommended budget proposal.
Deep Cuts to Key Housing Programs
Overall, PHADA is deeply concerned by the significant funding cuts proposed in the House bill. Notably, the draft legislation includes:
- A 28% cut to the Public Housing Capital Fund.
- A 9% cut to the Public Housing Operating Fund.
- Level funding for Voucher Contract Renewals and 28% cut to Voucher Admin fees. Given rising rents, inflation, and program growth, level funding for voucher renewals will result in many families losing assistance.
- Zero funding for the HOME Investment Partnerships Program (HOME) and the Choice Neighborhoods Initiative (CNI).
- Cuts to self-sufficiency programs of over 11% to Family Self-Sufficiency (FSS), and 12.5% to Resident Opportunities and Self-Sufficiency (ROSS).
If enacted, these cuts would undermine core housing operations and erode essential resident services. The proposed funding levels fall far short of what is necessary for the HUD programs that provide safe and affordable housing to low-income families.
See the table below for a detailed funding comparison.
Bill Includes Some New Flexibilities
The bill also contains several policy provisions directing how appropriated funds are spent, known as “riders.” PHADA has long supported these efforts to help agencies better address local needs. However, such tools offer limited relief in the context of deeply inadequate funding. Flexibilities are not a substitute for the resources required to sustain core operations and services.
Some provisions in the bill include:
- Language allowing HAs to adopt alternative methods for calculating Total Tenant Payments (TTP) and Housing Assistance Payments (HAP).
- Authorizes the HUD Secretary to designate housing authorities to combine Public Housing Operating and Capital Funds, including reserves, into a single account. Housing authorities will be left to stretch insufficient dollars across mounting operational and capital needs, potentially turning to their reserves to offset shortfalls.
While not a rider, the bill also allows the Department to repurpose some Tenant Protection Vouchers (TPV) appropriations to prevent funding shortfalls for Emergency Housing Vouchers (EHVs) in calendar year 2026.
However, the bill does not include PHADA-supported policy provisions, such as prohibiting HUD from using its flawed performance metrics system to determine FSS funding awards. While it blocks HUD from enforcing its own 30-day notice rule, it does not rescind the 30-day notice requirement established by the CARES Act.
PHADA will provide a more in-depth analysis on the House appropriations bill in a future edition of the Advocate. As the Association continues to advocate for full HUD funding, members are encouraged to contact their Members of Congress—particularly those serving on the T-HUD Appropriations Subcommittees in the House and Senate—to share how funding cuts and policy changes would impact their agencies.