Update (11/17/2025)
Following the government shutdown's conclusion, read more about what comes next for the appropriations process with NAA's latest update.
The Big Picture
On July 24, 2025, the U.S. Senate Appropriations Committee favorably passed its proposed Fiscal Year (FY) 2026 Budget appropriations for the federal transportation and housing agencies, also known as the T-HUD budget. Senate deliberations come just ten days after the House Appropriations Committee passed its proposed budget for the agencies.
Deeper Dive – House and Senate Comparisons
Despite concerns of potentially drastic cuts to the U.S. Department of Housing and Urban Development (HUD), the Republican-controlled House Appropriations Subcommittee proposed a relatively flat budget from FY 2025. As expected, the Senate proposed a higher overall budget for HUD – around $73 billion, which is six billion dollars more than what the House advanced.
The Senate added requests for $45 billion for the Community Development Block Grant (CBDG) Program, which was a significant increase over House recommendations. Both the House and Senate recommended slightly more than $17 billion for project-based housing programs (PBRA) and around $37 billion for tenant-based housing programs (TBRA), including funding to renew all existing Housing Choice Voucher (HCV) contracts.
The National Apartment Association (NAA) was pleased to see that the Senate included $1.25 billion for the HOME Investment Partnerships, which House appropriators zeroed out in their proposed bill. The House also zeroed out funding for Pathways to Removing Obstacles in Housing (PRO Housing); however, the Senate bill added $60 million for the program, which closely aligns with housing supply legislation long-supported by NAA.
NAA’s Take
Overall, the proposed House and Senate HUD funding levels are much better than had originally been suggested; they still fall short of the recommendations from industry groups, including NAA. With the appropriations process now well underway, it is important to note that Congress must finalize its work to fund the government for the next fiscal year by September 30, 2025, or pass a continuing resolution (CR) to avoid a government shutdown.
Over the coming weeks and months, NAA will remain closely engaged in the Congressional appropriations process. NAA and our industry partners recently sent a letter to appropriators requesting full funding for programs that focus on housing affordability, including the Housing Choice Voucher Program (HCV), Project Based Rental Assistance (PBRA), Rental Assistance Demonstration (RAD), Homelessness Programs, HOME, Community Development Block Grants (CDBG) and Rural Housing programs.
As NAA continues to work with Congress to ensure that our members’ priorities are accurately reflected in the final appropriations, we highly encourage all interested parties to evaluate these proposed budget appropriations and let your elected officials know that the funding math works for you. NAA is here as a resource to help with any appropriations questions or concerns. If we can be of any help navigating this process, please feel free to reach out to us at publicpolicy@naahq.org.