Both the House and Senate have released their drafts of the Transportation Housing and Urban Development (THUD) appropriations bills. Both the House and Senate largely rejected the policy changes set forth in President Trump’s FY26 funding request, including the proposal to overhaul rental assistance programs through the use of a “State Rental Assistance Block Grant.”

For Tenant-Based Rental Assistance, the House proposed a flat funding level for contract renewals whereas the Senate proposes an increase of approximately $1.8 billion over FY25’s appropriation for a total of $33.97 billion. Neither proposal includes funding for Emergency Housing Vouchers (EHVs), though the House budget would allow funds for Tenant Protection Vouchers to be used for EHVs.

The Senate provides $5.08 billion for public housing operating costs, a decrease of $414 million over FY25’s appropriation. The House’s public housing operating costs appropriation was $5 billion, a decrease of $501 million. The Senate’s public housing capital appropriation came in higher as well at $3.2 billion though a $210 decrease from FY25’s appropriation.

The House proposed a steep $1.12 billion cut for a total spend of $2.28 billion for capital. The House included policy provisions allowing for the implementation of work reporting requirements, minimum rent increases, and time limits in addition to restricting funding for communities with “sanctuary city” policies. The Senate did not include these policy proposals. Both the House and Senate reject the two-year limit on receiving HUD assistance as proposed in President Trump’s FY26 request.

Congress has until October 1^st to negotiate a final budget deal. We will continue to monitor and provide updates. Please feel free to contact us with any questions.