Full Year HUD Funding Signed Into Law, Ending Short Partial Government Shutdown

On February 3, 2026, the House voted 217-214 to pass the full fiscal year HUD funding bill, which President Trump signed into law. The passage of the bill ends the shutdown of HUD and several other federal agencies, which started on Saturday, January 31. Normal HUD operations will now resume.

Although the Senate broke up the original funding package from the House into five mini funding bills to separate out funding for the Department of Homeland Security and forced a short government shutdown, the Senate did not alter the substance of the bills. The provisions for HUD funding remain the same.

Here is a breakdown of some of the relevant funding provisions:

Congress has appropriated $77.3 billion to HUD for FY 2026. Congress further appropriated:

• $38.4 billion for Tenant-Based Rental Assistance/Section 8 housing vouchers, an increase from the FY 2025 enacted funding level of $36.04 billion.
• $8.3 billion for public housing, a decrease from the prior enacted level of almost $9 billion.
• $18.5 billion for Project-Based Rental Assistance, which is an increase above FY 2025 enacted levels of $16.5 billion.
• $4.4 billion for Homeless Assistance Grants, an increase of $366 million above FY 2025.
• $1.25 billion for the HOME program.
• $3.3 billion for the Community Development Block Grant program.
• $1.03 billion for Housing for the Elderly, which provides full renewal of housing contracts serving about 120,000 households.
• $287 million for Housing for Persons with Disabilities, serving about 33,000 households.
• $25 million for Funds Choice Neighborhoods, a sharp reduction in funding from the current level of $75 million.

The bill appropriates $144.5 million for the HUD Office of the Inspector General and $1.455 billion for HUD salaries and expenses, reflecting a 24 percent reduction in staffing at HUD.

Ballard Spahr is a national leader in affordable housing and community development law. Attorneys in our Affordable Housing and Community Development Group are monitoring the bill and are available to provide counsel.

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