U.S. House appropriators unveiled a fiscal 2027 spending bill that includes the Department of Housing and Urban Development (HUD), with proposed cuts drawing criticism from housing advocates.
The Transportation, Housing and Urban Development and Related Agencies Appropriations (THUD) Act, 2027, approved by the House Appropriations Committee’s subcommittee, provides a total of approximately $71.377 billion in discretionary budget authority for HUD and the Department of Transportation.
“[The new THUD bill] builds on the work we accomplished last cycle to ensure our nation’s transportation and housing infrastructure and programs best serve the needs of the American people,” said U.S. Rep. Steve Womack, who chairs the THUD subcommittee. “Whether it be in the sky or along our waterways, rail lines and highways, this bill supports the safe, efficient and reliable movement of people and goods nationwide.
“It also invests in housing and wrap‑around services for our nation’s most vulnerable – such as women, children, and veterans – while advancing policies that make housing more affordable for all Americans.”
While expressing satisfaction with some aspects of the bill, the National Association of Local Housing Finance Agencies (NALHFA) encouraged lawmakers to fund HUD and programs such as the tenant-based rental assistance account — commonly known as the Housing Choice Voucher Program — at the same level as the current year.
“NALHFA’s efforts with Congress to advocate against the FY27 Presidential Budget request to eliminate the Community Development Block Grant (CDBG) Program and HOME Investment Partnerships Program were successful, as the programs remain funded in the FY27 House bill,” NALHFA stated.
“NALHFA members are encouraged to contact their elected officials and advocate in support of level funding for HUD at a minimum of $77.3 billion, level funding for tenant-based rental assistance at a minimum of $38.4 billion, an increase in CDBG funding to $4.2 billion, an increase in HOME funding to $1.5 billion and level funding for homeless assistance grants at a minimum of $4.417 billion for FY27.”
Tenant-based rental assistance, public housing
THUD legislation provides $34.083 billion for the Housing Choice Voucher Program, or Section 8.
The bill also includes $4 billion that would become available Oct. 1, 2027.
A White House request to HUD last year included a proposal to eliminate Section 8 vouchers. However, such a move would require congressional action, which has not garnered necessary support to this point.
The Public Housing Fund is set to receive $7.069 billion for the fiscal year — a $1.25 billion cut compared to the 2026 fiscal year allotment.
An additional $50 million is provided for public housing agencies experiencing or at risk of financial shortfalls, to be distributed through a need-based application process, the bill states.
The bill prohibits Section 8 assistance to students under age 24 who are unmarried, childless, non-veterans and not disabled, with certain exceptions for former foster youth.
Homelessness assistance, CDBG
Homeless assistance grants total $4.161 billion — with $3.779 billion going to HUD’s Continuum of Care program and $290 million for emergency solutions grants.
In late 2025, the Trump administration tried reshaping the Continuum of Care program by limiting “Housing First” funding and prioritizing transitional housing tied to work and treatment requirements.
Lawsuits from states and advocacy groups followed — with Congress and federal courts later blocking the policy changes and preserving the existing grant structure.
The Community Development Fund has been allocated $5.853 billion, including $3.3 billion for the CDBG program.
Project-based assistance, housing for elderly and disabled
The Project-Based Rental Assistance account is slated to receive $18.575 billion and an additional $400 million in October 2027.
That allocation next October will raise the fiscal year total $432 million above what given in 2026.
Housing for the elderly will receive $1.062 billion — including $122 million for service coordinators and congregate service grants.
Housing for persons with disabilities is funded at $295.6 million, a $9 million increase over 2026.
The bill also requires HUD to take action when multifamily housing projects with project-based assistance receive failing physical inspection scores.
Within 15 days of a failing Real Estate Assessment Center inspection, a notice of default with a timetable for correcting deficiencies will be issued, the bill says.
If an owner fails to correct deficiencies, legislation states that HUD may impose civil money penalties, abate contracts, transfer projects to new owners, seek receivership or pursue other remedies.
This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.
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