The House Transportation, Housing and Urban Development, and Related Agencies (T-HUD) Appropriations Subcommittee met last week and passed their FY 2027 T-HUD budget along party lines (9-7).

By the Numbers:

  • A total proposed budget of $71.4 billion for HUD, which is $5.9 billion below the FY 2026 enacted level.
  • Tenant-based Section 8 would be funded at $38.083 billion, slightly below the $38.4 billion enacted in FY 2026.
  • Choice Neighborhoods would be zeroed out. The House also proposed zeroing out Choice Neighborhoods in FY 2026, though it was ultimately funded at $25 million.
  • HOME would be reduced to $500 million, down from $1.25 billion. However, in FY 2026, the President’s budget and the House bill both zeroed out HOME, so this is an improved starting point.
  • Continuum of Care (CoC) would be funded at $3.778 billion, a decrease of more than $231 million from FY 2026 enacted levels. The House rejected the President’s proposal to consolidate Homeless Assistance Grants within the Emergency Solutions Grant program and eliminate CoC funding.
  • Project-based Section 8 would be funded at $18.975 billion, which is a $432 million increase over FY 2026 enacted levels.
  • Section 202 Housing for the Elderly would be funded at $1.061 billion, a $30 million increase over FY 2026 enacted levels.
  • Section 811 Housing for Persons with Disabilities would be funded at $295 million, an $8 million increase above FY 2026 enacted levels.
  • There are also two provisions related to Build America, Buy America:
    • Exempts HOME, CDBG, SHOP, earmarks, public housing, and Native American housing programs from BABA compliance for FY 2027 and previous funding years; and
    • Directs HUD to review its BABA implementation and issue updated guidance for the HOME program only (the same language found in the 21st Century ROAD to Housing Act).

What’s Next: The full House Appropriations Committee markup will take place on Wednesday, June 3 at 11 am ET.