On February 9, 2026, President Trump signed into law the FY 2026 Transportation, Housing and Urban Development Appropriations Act, providing $77.3 billion for HUD programs plus an additional $6.9 billion in offsetting receipts, an increase of approximately $7.3 billion over FY 2025. This funding will support critical housing and community development initiatives nationwide. Here’s what housing and community development professionals need to understand about this year’s funding landscape.
Breaking Down the Numbers: FY 2026 vs. FY 2025
For FY 2026, HUD received total funding of $77.3 billion, a $7.0 billion increase from FY 2025’s $70.3 billion. Here’s how this year’s funding compares across all major HUD programs:
| Program | FY 2025 Enacted | FY 2026 Enacted | Change | % Change |
|---|---|---|---|---|
| Tenant-Based Rental Assistance (Section 8 HCV)* | $36.04 billion | $38.44 billion | +$2.40 billion | +6.7% |
| Project-Based Rental Assistance | $16.49 billion | $18.54 billion | +$2.05 billion | +12.4% |
| Public Housing Fund | ~$9.0 billion | $8.32 billion | -$0.68 billion | -7.6% |
| Homeless Assistance Grants | $4.08 billion | $4.42 billion | +$0.34 billion | +8.3% |
| Community Development Block Grants (CDBG) | $3.30 billion | $3.30 billion | No change | 0% |
| HOME Investment Partnerships Program | $1.25 billion | $1.25 billion | No change | 0% |
| Housing for the Elderly (Section 202) | ~$931 million | $1.0 billion | +$69 million | +7.4% |
| Housing Opportunities for Persons With AIDS (HOPWA) | $505 million | $529 million | +$24 million | +4.8% |
| Housing for Persons with Disabilities (Section 811) | ~$257 million | $287 million | +$30 million | +11.7% |
| Office of Lead Hazard Control and Healthy Homes | ~$296 million | $296 million | No change | 0% |
| HUD Management and Administration | ~$1.9 billion | $1.5 billion | -$0.4 billion | -21% |
| Other HUD Programs and Accounts | ~$1.3 billion | ~$1.4 billion | Variable | Variable |
| TOTAL HUD BUDGET | $70.3 billion | $77.3 billion | +$7.0 billion | +10.0% |
*The Tenant-Based Rental Assistance total includes $34.9 billion for contract renewals, $601 million for Tenant Protection Vouchers, plus administrative fees and other components.
Note: The Housing Trust Fund receives mandatory funding from Fannie Mae and Freddie Mac contributions rather than through the annual appropriations process, so it is not included in these totals.
Key Highlights from the FY 2026 Bill
Office of Community Planning and Development: $13.3 Billion
The Office of Community Planning and Development received $13.3 billion in total funding, which includes:
- Community Development Block Grants: $3.3 billion for economic and community development activities
- Homeless Assistance Grants: $4.417 billion, a $336 million increase from FY 2025, including:
- $290 million for Emergency Solutions Grants
- Remaining funds for Continuum of Care programs and related homeless assistance
- Special language requiring HUD to renew Continuum of Care grants expiring in the first quarter of 2026 (January-March) for 12 months, with a timeline for renewing expiring grants throughout the year if HUD has not issued awards under a new Notice of Funding Opportunity
- HOME Investment Partnerships Program: $1.25 billion for affordable housing development
- HOPWA: $529 million for housing opportunities for persons living with HIV/AIDS
- Self-Help and Assisted Homeownership Opportunity Program: $65 million
- SUPPORT for Patients and Community Recovery Housing Program: $30 million
- Eviction Protection Grant Program: $7.5 million, a decrease from $20 million in FY 2025
Office of Public and Indian Housing: $48.4 Billion
This includes:
- Tenant-Based Rental Assistance (Housing Choice Vouchers): $34.9 billion for contract renewals, ensuring the renewal of all existing voucher contracts
- Tenant Protection Vouchers: $601 million, a $264 million increase from FY 2025. The bill includes language allowing Public Housing Authorities to use these vouchers to help transition families currently receiving Emergency Housing Voucher assistance to new assistance
- Public Housing Fund: $8.3 billion
- HUD Self-Sufficiency Programs: $206.4 million
- Indian Housing Block Grant: Just over $1.1 billion maintained at FY 2025 levels
- Indian Housing Block Grant – Competitive: $125 million, a $25 million decrease from FY 2025
- Native American/Native Hawaiian Programs: $1.4 billion total
Office of Housing: $19.9 Billion
Funding includes $18.5 billion for Project-based Rental Assistance, $1 billion for Housing for the Elderly, and $287 million for Housing for Persons with Disabilities.
What This Means for Communities
The FY 2026 allocations reflect a significant increase in federal support for housing and community development programs, with an overall increase of approximately $7.3 billion over FY 2025:
Housing Choice Vouchers: With $34.9 billion allocated for contract renewals, communities can maintain all existing voucher assistance, ensuring that seniors, people with disabilities, and working families who currently receive assistance continue to have stable housing.
Tenant Protection Vouchers: The $264 million increase (bringing total TPV funding to $601 million) provides crucial resources for families displaced by public housing demolitions, disasters, or other emergencies. The new flexibility to use these vouchers to transition Emergency Housing Voucher families to permanent assistance addresses a critical need as the EHV program winds down.
CDBG Program: With funding maintained at $3.3 billion, communities can continue implementing planned community development initiatives without disruption.
HOME Program: Funding remained level at $1.25 billion, maintaining stability after the program faced the prospect of elimination earlier in the appropriations process.
HOPWA Program: The increase of $24 million (4.8%) demonstrates renewed federal commitment to addressing housing needs for persons living with HIV/AIDS and will allow expanded services.
Homeless Assistance Grants: The $336 million increase (bringing total funding to $4.417 billion) represents significant new investment in addressing homelessness. The bill’s language requiring non-competitive 12-month renewals of expiring Continuum of Care grants provides crucial stability for providers serving people experiencing homelessness.
Indian Housing Block Grant: Maintaining funding at just over $1.1 billion ensures continued support for tribal housing initiatives, though the $25 million reduction in the competitive program may require some tribes to adjust their project plans.
Recovery Housing Program: Consistent funding at $30 million allows communities to maintain existing recovery housing initiatives.
Eviction Protection Grant Program: The reduction from $20 million to $7.5 million will require communities to prioritize resources for eviction prevention services more carefully.
Looking Forward
With President Trump signing the bill into law on February 9, 2026, the FY 2026 funding levels provide communities with certainty and the ability to plan ahead. The significant overall increase of $7.3 billion in HUD funding reflects continued congressional support for housing and community development programs. The substantial increases in Housing Choice Vouchers (up $2.4 billion), Project-Based Rental Assistance (up $2.1 billion), and Homeless Assistance Grants (up $336 million) represent major policy priorities, while maintaining stable funding for core programs like CDBG and HOME allows grantees to continue their work without disruption.
HUD is required to notify grantees of their formula allocations within 60 days of enactment for certain programs, which means communities can expect state-by-state allocation announcements by early to mid-April 2026. Grantees should begin preparing their annual action plans and budgets based on these funding levels.
Accessing Full Allocation Information
Once released, the complete list of grantee allocations will be available through HUD’s Office of Community Planning and Development. Communities can access their specific allocation amounts and program details on the HUD website’s official announcement.
Neighborly Software: Supporting HUD Grant Management Nationwide
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As always, we’re here to help our neighbors manage these funds effectively and make the biggest possible impact in their communities
For more information about HUD’s Community Planning and Development formula programs, visit HUD.gov. The full text of the FY 2026 Transportation, Housing and Urban Development Appropriations Act is available through the Senate Appropriations Committee.
