FY26 HUD Appropriations Bill Clears Congress: Essential Housing Investments Protected as FY26 Bill Advances

Yesterday, the House of Representatives passed the Fiscal Year (FY) 2026 HUD appropriations bill in a narrow 217 to 214 vote, following months of negotiation and nationwide advocacy, and averting a wider government shutdown. Progress on the broader funding package had stalled while Congress worked through urgent questions surrounding the Department of Homeland Security (DHS).

To ensure urgently needed housing and homelessness resources could move forward, lawmakers advanced the remaining government funding bills, while acknowledging that DHS budget and policy negotiations required more time. As a result, Congress approved a two-week extension of DHS funding, allowing those discussions to continue while the rest of the government funding proceeded.

“This outcome is a direct result of communities speaking with one voice,” said Deborah De Santis, President and Chief Executive Officer of CSH. “Advocates and leaders from housing, services, businesses, and local governments across the United States met with congressional offices, shared potential impacts, and pushed for a solution that centered people’s housing stability. Congress listened, and the final bill protects essential housing and services at a moment when stability and safety are critical for individuals and communities.”

The final agreement provides $77.3 billion for HUD in FY26, representing an increase over the yearlong continuing resolution enacted for FY25. This funding preserves and strengthens essential housing and homelessness programs, supports continuity for supportive housing across the country, and includes targeted adjustments that help communities keep pace with rising rents, higher operating expenses, and growing service needs. These investments will help ensure that individuals and families in supportive housing remain stable and safe.

Another major component of the bill is the inclusion of language that protects communities from funding disruptions and spikes in evictions by creating a renewal structure for critical Continuum of Care (CoC) housing and services funding. This outcome was a result of sustained advocacy from CoCs, coalitions, service providers, local leaders, and people with lived expertise.

The bill puts in place a renewal structure that prevents gaps in funding for CoC programs while the FY25 Notice of Funding Opportunity (NOFO)—which introduced significant policy changes that could have diverted critical resources away from supportive housing, —remains under litigation. HUD is required to renew all CoC grants expiring in the first quarter of 2026 for a full twelve months. For projects expiring later in the year, additional renewals will be issued automatically on April 1 and July 1 unless a new NOFO has been released, and funding has been issued in compliance with court orders.

All renewed grants must match the prior award amount and include cost-of-living and fair market rent adjustments, helping programs maintain operations during the delay. The bill also directs HUD to fund at least sixty percent of each CoC’s Annual Renewal Demand in the FY26 NOFO, providing added stability as communities plan for the year ahead.

CSH extends its thanks to the Transportation-HUD appropriators, Appropriations Committee leadership, and the dedicated committee staff in both the House and Senate. Their bipartisan cooperation and commitment to practical solutions were essential to achieving this outcome.

With the President’s signature, the FY26 HUD appropriations bill is now law. HUD will begin implementing the FY26 provisions immediately, including the renewal of FY25 CoC contracts that expire between January and March. CSH will continue to monitor implementation closely and provide updates as federal agencies release guidance and begin rolling out next steps.

This is an important milestone for supportive housing, and we are grateful to every community, partner, and advocate who helped make it possible. Together, we will continue advancing the policies and investments needed to ensure that everyone has a safe and stable home.