Contents

• About the THUD Bill
• Overview of the FY2026 Appropriations Process
• President's budget
• House Committee Action
• Senate Committee Action
• Funding Lapse and Continuing Resolution
• Full-Year Appropriations Enacted
• Title I: Department of Transportation
• Additional Funding for FY2026 Provided in the IIJA
• IIJA Transfers
• Selected FY2026 DOT Appropriations Topics
• Funding by Agency
• IIJA Transfers
• Earmarks
• Selected Administrative Provisions
• Selected General Provisions for DOT
• Title II: Department of Housing and Urban Development
• Overview
• Selected FY2026 HUD Appropriations Topics
• Rental Assistance
• Homeless Assistance
• Native American Programs
• Proposed Elimination of Grant Programs
• Earmarks
• Select General Provisions
• Title III: Related Agencies
• U.S. Interagency Council on Homelessness

Summary

The House and the Senate Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Subcommittees are charged with providing annual appropriations for the U.S. Department of Transportation (DOT), the U.S. Department of Housing and Urban Development (HUD), and certain related agencies.

On February 3, 2026, the Consolidated Appropriations Act, 2026 (P.L. 119-75) was signed into law, which included as Division D the Transportation, HUD, and Related Agencies Appropriations Act, 2026. It included the following:

• For DOT, $25.1 billion in new discretionary funding (-0.4% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the bill is $108.4 billion in FY2026 (+1.5% relative to FY2025 enacted). Additionally, the law includes transfers involving supplemental funding totaling $2.3 billion.
• For HUD, $77.3 billion in net new discretionary funding (+12.6% relative to FY2025 enacted, including emergency-designated funding for regular program operations).
• For the related agencies typically funded in the THUD bill, $425 million (-1.8% relative to FY2025 enacted).

Prior to enactment of final full-year THUD appropriations, funding for THUD was maintained at FY2025 levels via a continuing resolution (Division A of P.L. 119-37), which was enacted following a government-wide funding lapse that lasted from October 1, 2025, through November 12, 2025.

Before the start of the fiscal year, the House and Senate took various appropriations actions.

On July 17, 2025, the House Appropriations Committee marked up its FY2026 THUD appropriations bill (H.R. 4552; H.Rept. 119-212), following subcommittee markup on July 14. The committee reported the bill on July 21. It included the following:

• For DOT, $21.8 billion in new discretionary funding (-13.7% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the THUD bill would have been $105.1 billion in FY2026 (-1.6% relative to FY2025 enacted).
• For HUD, $67.8 billion in net new discretionary funding (+11.6% relative to FY2025 enacted, including emergency-designated funding for regular program operations).
• For the related agencies typically funded in the THUD bill, $366 million (-15.5% relative to FY2025 enacted).

Forgoing initial subcommittee markup, the Senate Appropriations Committee marked up and reported its FY2026 THUD appropriations bill (S. 2465; S.Rept. 119-47) on July 24, 2025. It included the following:

• For DOT, $26.5 billion in new discretionary funding (+5.1% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the THUD bill would have been $109.8 billion in FY2026 (+2.8% relative to FY2025 enacted).
• For HUD, $73.3 billion in net new discretionary funding (+20.7% relative to FY2025 enacted, including emergency-designated funding for regular program operations).
• For the related agencies typically funded in the THUD bill, $424 million (-2.1% relative to FY2025 enacted).

The annual appropriations process generally begins with the release of the President's budget, which is due in February. The second Trump Administration's FY2026 budget release was delayed due to the presidential transition and other factors. A skinny budget was released in early May 2025, with more details—including Congressional Budget Justifications—released later. For the agencies that comprise the THUD budget, it proposed the following:

• For DOT, $26.7 billion in net new discretionary funding (+5.6% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the THUD bill would be $109.9 billion in FY2026 (+3% relative to FY2025 enacted).
• For HUD, $36.6 billion in net new discretionary funding (-46.8% relative to FY2025 enacted, including emergency-designated funding for regular program operations).
• For the related agencies typically funded in the THUD bill, $293 million (-32.3% relative to FY2025 enacted).

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The House and the Senate Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Subcommittees are charged with providing annual appropriations for the U.S. Department of Transportation (DOT), the U.S. Department of Housing and Urban Development (HUD), and certain related agencies.

This report describes action on FY2026 annual appropriations for THUD, including detailed tables for each major agency and a brief overview of selected issues. (Rounded funding figures are presented in the report, but unrounded figures are used to calculate percentages throughout.)

About the THUD Bill

The THUD bill funds two federal departments—DOT and HUD—and several smaller related agencies. Of the 12 regular appropriations bills, THUD is typically the fourth largest in terms of discretionary funding and it typically contains the largest number of Community Project Funding/Congressionally Directed Spending projects (earmarks).¹

As shown in Table 1 and Figure 1, the distribution of funding within the THUD bill differs depending on the inclusion or exclusion of mandatory funding associated with the bill. Including both mandatory and discretionary funding, DOT's budget is larger than that of HUD's and the related agencies make up a small share of total funding. Conversely, when looking only at net discretionary budget authority—the funding that counts for congressional scorekeeping purposes, which accounts for savings from offsets and rescissions but excludes mandatory funding—HUD's share is larger than DOT's share.

Figure 1. Distribution of THUD Funding by Title FY2025 Enacted

Source: Comparative Statement of New Budget (Obligational) Authority table, as published in H.Rept. 118-584. Notes: Discretionary funding reflects net discretionary funding. Excludes emergency funding, except emergency funding provided for regular program operations.

Overview of the FY2026 Appropriations Process

The annual appropriations process generally begins with the release of the President's budget in February. The Trump Administration's FY2026 budget release was delayed. A skinny budget was released in early May 2025, with more details—including Congressional Budget Justifications—released beginning at the end of May. Part of the delay may be attributable to the change in administration. It may also be attributable to the delayed resolution of the FY2025 annual appropriations process, which culminated with enactment of a full-year continuing resolution funding agencies at FY2024 levels, with some anomalies (including for THUD), on March 15, 2025 (P.L. 119-4).

In order to begin congressional deliberation of individual appropriations acts, generally an agreement is reached via a budget resolution or other vehicle to establish both a top-line funding level for annual appropriations (called a 302(a) level) as well as individual appropriations subcommittee allocations (called 302(b) allocations). As of the cover date of this report, no such formal topline agreement for FY2026 had been reached in either the House or the Senate. On June 11, 2025, the House Committee on Appropriations ordered reported draft interim allocations for four of its 12 subcommittees, pending publication of the Appropriations Committee's 302(a) allocation in the Congressional Record by the Chair of the House Committee on the Budget; those draft allocations were subsequently revised, including on July 17, when an allocation for THUD was adopted. The House THUD allocation was set at $89.9 billion, a 4% increase over the FY2025 enacted level. As of the cover date of this report, no formal allocations for FY2026 were established for the Senate Committee on Appropriations or its subcommittees.

The following provides a brief overview of action on FY2026 THUD appropriations, including Table 1, which provides comparable funding levels at the THUD bill title level. That is followed by more detail, organized by bill Title.

President's budget

For the agencies that comprise the THUD budget, the President's FY2026 budget requested the following:

• For DOT, $25.2 billion in net new discretionary funding (+4% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding would have been $108.4 billion in FY2026 (+1.5% relative to FY2025 enacted).
• For HUD, $36.6 billion in net new discretionary funding (-46.8% relative to FY2025 enacted, including emergency-designated funding for regular program operations).
• For the related agencies typically funded in the THUD bill, $293 million (-32.3% relative to FY2025 enacted).²

House Committee Action

On July 17, the House Appropriations Committee marked up its FY2026 THUD appropriations bill (H.R. 4552; H.Rept. 119-212), following subcommittee markup on July 14. The committee reported the bill on July 21. It included the following:

• For DOT, $21.8 billion in new discretionary funding (-13.7% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding was proposed at $105.1 billion in FY2026 (-1.6% relative to FY2025 enacted).
• For HUD, $67.8 billion in net new discretionary funding (+11.6% relative to FY2025 enacted, including emergency-designated funding for regular program operations).
• For the related agencies typically funded in the THUD bill, $366 million (-15.5% relative to FY2025 enacted).

Senate Committee Action

Forgoing initial subcommittee markup, the Senate Appropriations Committee marked up and reported its FY2026 THUD appropriations bill (S. 2465; S.Rept. 119-47) on July 24. It included the following:

• For DOT, $26.5 billion in new discretionary funding (+5.1% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding was proposed at $109.8 billion in FY2026 (+2.8% relative to FY2025 enacted).
• For HUD, $73.3 billion in net new discretionary funding (+20.7% relative to FY2025 enacted, including emergency-designated funding for regular program operations).
• For the related agencies typically funded in the THUD bill, $424 million (-2.1% relative to FY2025 enacted).

Funding Lapse and Continuing Resolution

Prior to enactment of FY2026 full-year appropriations, most federal agencies—including DOT, HUD, and the related agencies typically funded in the annual THUD appropriations act—were funded under a continuing resolution (CR).³ The CR was enacted as Division A of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (P.L. 119-37). It was signed into law on November 11, 2025, ending a funding lapse and government shutdown that began at the start of FY2026 (October 1, 2025). The CR extended FY2025 funding levels through January 30, 2026. It contained three anomalies affecting THUD accounts:

• Section 161 allowed HUD to use unobligated balances from specific set-asides within the tenant-based rental assistance account to meet renewal needs in the Section 8 Housing Choice Voucher program as necessary to prevent the termination of assistance to current program participants due to insufficient funding. This anomaly was requested by the Administration, which contended that without the provision, resources may be inadequate to sustain housing vouchers for up to 40,000 families.
• Section 162 provided that amounts made available by Section 101 for DOT's Essential Air Service program, funded by the Office of the Secretary's Payments to Air Carriers account, could be apportioned at a rate necessary to maintain program operations. The program provides subsidies to air carriers for operation of routes that connect smaller airports to larger airports in 181 communities throughout the United States.
• Section 163 extended the statutory termination date for DOT's Motor Carrier Safety Advisory Committee through the duration of the CR.

Full-Year Appropriations Enacted

On February 3, 2026, the Consolidated Appropriations Act, 2026 (P.L. 119-75) was signed into law, which included as Division D the Transportation, HUD, and Related Agencies Appropriations Act, 2026. It included the following:

• For DOT, $25.1 billion in new discretionary funding (-0.4% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the bill is $108.4 billion in FY2026 (+1.5% relative to FY2025 enacted).
• For HUD, $77.3 billion in net new discretionary funding (+12.6% relative to FY2025 enacted, including emergency-designated funding for regular program operations).
• For the related agencies typically funded in the THUD bill, $425 million (-1.8% relative to FY2025 enacted).

Title I: Department of Transportation

DOT is responsible for the federal regulation and funding of most modes of U.S. transportation. Among its various responsibilities, DOT operates the nation's air traffic control system; regulates aviation, commercial trucking, and motor vehicle safety; and provides grants to support aviation, highway, transit, and passenger rail infrastructure as well as highway, maritime, and pipeline safety.

DOT is organized into 11 units. Five operating administrations each oversee a mode of transportation: Federal Aviation Administration (FAA); Federal Transit Administration (FTA); Federal Railroad Administration (FRA); Maritime Administration (MARAD); and, Pipeline and Hazardous Materials Safety Administration (PHMSA). Three operating administrations oversee certain aspects of roadways: Federal Highway Administration (FHWA); Federal Motor Carrier Safety Administration (FMCSA); and National Highway Traffic Safety Administration (NHTSA). Two offices have department-wide responsibilities: Office of the Secretary (OST) and Office of Inspector General (OIG). The Great Lakes St. Lawrence Seaway Development Corporation (GLSDC) is the wholly owned government corporation that operates and maintains two locks on the St. Lawrence Seaway and other aspects of navigation infrastructure.⁴

The source of most of DOT's annual funding is provided by two periodic authorization acts, one for surface transportation programs and one for aviation programs. The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) authorized programs and funding for surface transportation programs for FY2022-FY2026. The FAA Reauthorization Act of 2024 (P.L. 118-63) authorized Aviation and Airways Trust Fund (AATF) taxes and revenue collections and civil aviation program expenditures through FY2028. Most of the funding for the programs in those acts is drawn from the Highway Trust Fund (HTF) and the AATF, respectively. HTF revenues come largely from fuel taxes and increasingly from transfers from the general fund of the Treasury.⁵ AATF revenues come largely from taxes on passenger tickets and aviation fuel and some general fund money.⁶

Most of the funding drawn from the HTF, and a portion of the funding drawn from the AATF, is in the form of contract authority, a type of budget authority that is considered mandatory (rather than discretionary). In addition to providing regular annual discretionary appropriations, the THUD bill includes obligation limitations on this mandatory budget authority. That mandatory budget authority does not count against the THUD bill's 302(b) discretionary suballocation.

Table 2 provides the detailed appropriations for DOT by agency and account showing the FY2025 enacted funding levels, the FY2026 President's budget request, the FY2026 funding proposals from both the House Appropriations Committee and the Senate Appropriations Committee, and FY2026 enacted funding levels. Total appropriations and net discretionary budget authority rows of the table reflect new discretionary budget authority. In addition to the total of budgetary resources provided at the conclusion of Table 2, the IIJA (P.L. 117-58, Division J) appropriated to DOT $36.8 billion in supplemental advance appropriations per year for various programs for each of FY2022-FY2026 (as shown Table 3). P.L. 119-75 included transfers of funding from P.L. 117-58 that totaled $2.3 billion. These transfers are not reflected in the total discretionary budget authority for DOT. Transfers are listed by account in Table 4 and the source accounts of funding are described further in the "IIJA Transfers" section of this report. Community Project Funding/Congressionally Directed Spending for 2026 is discussed in the "Earmarks" section of the DOT part of this report (and shown in Table 5).

Additional Funding for FY2026 Provided in the IIJA

In addition to regular annual appropriations and contract authority, some DOT agencies and programs receive supplemental advance appropriations. Specifically, DOT received $184.1 billion from Division J, Title VIII of the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58). These supplemental funds were provided in FY2022 as an advance appropriation, divided into equal portions ($36.8 billion total) that become available each year of the authorization period (FY2022-FY2026), for DOT programs authorized in Divisions A-C and J of the IIJA. That $36.8 billion in annual supplemental funding equals slightly over one-third of the FY2026 funding recommended for DOT in the THUD FY2026 appropriations bills. Table 3 shows the distribution of the supplemental funding available to DOT during FY2026. The House and the Senate committee bills propose transferring some FY2026 IIJA funding between accounts (discussed later in this report; see the "IIJA Transfers" section).

IIJA Transfers

The FY2026 appropriations law included a number of provisions affecting funds that were provided by the IIJA. These provisions fall into two broad categories: provisions that transfer IIJA funding between program activities within the same agency and provisions that rescind and reappropriate IIJA funding for which the obligation period would otherwise be expiring. Table 4 provides the total funding available for agencies that had accounts that received transfers of IIJA funding in FY2026, excluding obligation limitations. The table shows the agency total, the specific agency accounts that received transfers in FY2026, and the source of funding for the included accounts (new discretionary budget authority from the General Fund or IIJA transfers).

Selected FY2026 DOT Appropriations Topics

Funding by Agency

Office of the Secretary (OST)

The Secretary of Transportation leads DOT and is the principal adviser to the President on transportation and federal transportation programs. OST develops and oversees national transportation policy and administers some grant, research, and credit programs. OST houses the Office of the Under Secretary for Policy, which oversees the Offices of Transportation Policy; Multimodal Freight and Infrastructure Policy; and Research, Development, and Technology. OST is funded by contract authority, annual appropriations, and multiyear advance appropriations (IIJA, Division J).

For OST, FY2026 enacted funding levels are about 10% below FY2025. The FY2026 President's budget had proposed a 57% reduction in funding for OST.

Neither the President's budget request nor the House committee bill proposed funding for the Rural and Tribal Infrastructure Advancement account or the Office of Civil Rights account. The FY2026 appropriations law provided funding for both accounts below FY2025 levels, matching the Senate committee's proposal. The Rural and Tribal Infrastructure Advancement account received a 60% decrease and the Office of Civil Rights account saw about a 36% decrease in funding from FY2025 to FY2026.

The FY2026 appropriations law included $145 million for the National Infrastructure Investments account for the local and regional project assistance grant program defined under Section 6702 of Title 49 of the U.S. Code, a 58% decrease in additional funding compared to FY2025 enacted levels (-$200 million). This program is currently called BUILD, or Better Utilizing Investments to Leverage Development.⁷

For Research and Technology, the final FY2026 funding level is 52% above FY2025. The President's budget had proposed a 2% increase above FY2025. The House and Senate committee bills proposed reductions for this account of 10% and 33%, respectively, relative to FY2025.

Federal Aviation Administration (FAA)

FAA programs are funded under four broad budget accounts: Operations and Maintenance (such as air traffic control and aviation safety functions); Facilities and Equipment (such as control towers and navigation beacons); grants for airports under the Airport Improvement Program (AIP); and Research, Engineering and Development. Some important issues for the FAA are the age and operation of the air traffic control system, including the air traffic controller workforce, and aviation safety, including airline safety and aircraft certification.⁸

For the Airport Discretionary Grants account, the President's FY2026 request included no new funding. The House committee bill proposed a 527% increase in funding and the Senate committee bill proposed a 539% increase in funding relative to FY2025. Of the funding proposed for this account, the House committee bill proposed to set aside 90% for Community Project Funding and the Senate committee bill proposed to set aside 84% for Congressionally Directed Spending.

The FY2026 appropriations law included a 317% increase in new discretionary budget authority relative to FY2025 for Airport Discretionary Grants. The law also transferred $369 million in prior-year unobligated funds from the IIJA to this account. This transfer increased funding available in the account for FY2026 to 1,056% above FY2025 levels. Of that total funding, 94% is directed to Community Project Funding and Congressionally Directed Spending projects. The remaining budget authority ($35 million) is available for Airport Discretionary Grants.

Federal Highway Administration (FHWA)

Federal funding for highway infrastructure is provided primarily through the federal-aid highway program administered by FHWA.⁹ The majority of funding for the federal-aid highway program is provided through an authorization of appropriations from the Highway Trust Fund's highway account.¹⁰ For FHWA, the annual appropriations process provided funding for activities including, but not limited to, large infrastructure grants, rural highway construction, and Community Project Funding/Congressionally Directed Spending projects.

The FY2026 President's budget requested $770 million for the Highway Infrastructure Programs account solely for grants under the Infrastructure for Rebuilding America Program (INFRA; 23 U.S.C. §117). The FY2026 appropriations law made $200 million available for INFRA grants.

For the Highway Infrastructure Programs account, the House Appropriations Committee proposed a 185% increase in funding compared to FY2025. The Senate Appropriations Committee proposed a 71% increase for FY2026 compared to FY2025. The FY2026 appropriations law included $927 million for the Highway Infrastructure Programs account, which is 172% of FY2025 funding levels, nearly matching the House committee's funding proposal.

Additionally, the FY2026 appropriations law provided FHWA with $1.5 billion in IIJA transfers from other accounts for a total funding level of $2.4 billion in FY2026. The $1.5 billion in transfers of IIJA funding amounts to 97% of the funding provided for Community Project Funding and Congressionally Directed Spending projects under this account in FY2026 ($1.5 billion). The House and the Senate committees proposed funding for Community Project Funding ($954 million) and Congressionally Directed Spending ($581 million) in this account.

National Highway Traffic Safety Administration (NHTSA)

NHTSA is responsible for motor vehicle safety, highway safety, behavioral safety programs, motor vehicle information, and automobile fuel economy programs.¹¹

The FY2026 President's budget included no change in funding for the NHTSA, compared to FY2025. The House Appropriations Committee proposed a 40% reduction in funding for the Operations and Research account, the sole account for NHTSA, for FY2026 compared to FY2025. The Senate Appropriations Committee proposed a 71% compared to FY2025. In the FY2026 appropriations law, the Operation and Research account received $71 million in funding, which is 68% below FY2025.

The total funding available for NHTSA is $200 million, which includes the $71 million in new discretionary budget authority and $129 million in transfers from IIJA accounts. This brings FY2026 funding levels to 10% below (-$23 million) FY2025 funding levels ($223 million).

Federal Railroad Administration (FRA)

FRA provides funding to monitor and enforce compliance with rail safety regulations, conduct rail research and development, subsidize the capital and operating expenses of the National Railroad Passenger Corporation (Amtrak), and award grants to improve passenger and freight rail infrastructure, service, and equipment. Amtrak is reliant on annual appropriations to continue operating its national system of passenger routes, and determining the level of funding available for Amtrak and rail infrastructure grants is likely to be an issue for appropriators.¹²

The FY2026 President's budget included an 11% increase in funding for FRA relative to FY2025 (+$314 million), whereas the House Appropriations Committee proposed an 88% reduction (-$2.6 billion) relative to FY2025 ($2.9 billion). The Senate Appropriations Committee proposed funding for FY2026 was comparable to FY2025. In the final FY2026 appropriations law, FRA was funded at 5.5% (-$161 million) below FY2025.

FRA administers annual funding for Amtrak, which is divided into separate grants for the Northeast Corridor (the line connecting Boston, New York City, and Washington, DC) and the National Network (including short-distance routes that receive operating support from states and long-distance routes fully funded by Amtrak). The FY2026 appropriations law included a 3% reduction (-$763,000) in funding for Amtrak grants, including a 26% reduction (-$291 million) in funding for Northeast Corridor grants and a 23% increase (+$291 million) for National Network grants, compared to FY2025. The FY2026 President's budget included and the Senate committee proposed a 26% reduction in funding for the Northeast Corridor grants and a 23% increase in for the National Network grants compared to FY2025. The House committee's proposal included no funding for grants for the Northeast Corridor or National Network grants.

FRA also administers several grant programs that make funding available for states and/or rail carriers to improve or expand their infrastructure. These include the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program established by the Fixing America's Surface Transportation Act (FAST; P.L. 114-94), which can fund a wide variety of rail projects. The FY2026 President's budget included a 400% increase in funding (+$400 million) for CRISI compared to FY2025 ($100 million). The House committee proposed a 62% reduction in new discretionary budget authority for CRISI compared to FY2025; the Senate committee proposed a 7% increase. The FY2026 appropriation law included just over $7 million for CRISI, which is 93% less than was appropriated in FY2025.

In addition to new regular discretionary appropriations, the House committee proposed the transfer of $500 million from IIJA Division J appropriations for the Federal-State Partnership for Intercity Passenger Rail Grants to the CRISI account. The Senate committee also proposed the transfer of $44.8 million of unobligated balances of the Highway Infrastructure Program account appropriated to carry out the National Electric Vehicle Formula Program to CRISI for grants. The transferred IIJA funding would have been derived from unobligated balances previously appropriated for FY2025 and FY2026 for activities related to financial assistance oversight and technical assistance under the IIJA's FRA-CRISI account. The FY2026 appropriation law transferred $130 million in IIJA funding to CRISI, making $137 million in total funding available, a 37% increase from FY2025.

The House committee's proposal of new discretionary budget authority for CRISI was 100% ($38 million) for Community Project Funding. The Senate proposed 48% of new discretionary budget authority to the CRISI account for Congressionally Directed Spending. In the FY2026 appropriations law, 58% of the $137 million provided is for Community Project Funding/Congressionally Directed Spending projects.

The Federal-State Partnership for Intercity Passenger Rail program established by the IIJA is limited to projects that improve or expand intercity passenger (as opposed to commuter or freight) rail service. The House Appropriations Committee did not propose any new funding for the Federal-State Partnership for Intercity Passenger Rail account for FY2026. The Senate Appropriations Committee proposed a funding level for FY2026 that matched the FY2025 level. The FY2026 appropriations law provides $25 million in new discretionary budget authority and $40 million in transfers of unobligated balances previously appropriated for FY2026 activities related to financial assistance oversight and technical assistance for IIJA's FRA-Federal-State Partnership for Intercity Passenger Rail account.

Federal Transit Administration (FTA)

Federal funding assistance to public transportation agencies is provided primarily through the public transportation program administered by the Department of Transportation's Federal Transit Administration (FTA).¹³ The FY2026 appropriations law provided 22% less in new discretionary budget authority to FTA overall, relative to FY2025.

The FTA's account for Capital Investment Grants supports state, local, and private investment in capital projects for new and expanded transit service. The final FY2026 appropriations law provided Capital Investment Grants with 23% less in new discretionary budget authority in FY2026 compared to the $2.2 billion authorized in FY2025. The law directed the funds to be distributed as follows: $1.4 billion to projects authorized under Title 49, Section 5309(d), of the U.S. Code; $200 million to projects authorized under Title 49, Section 5309(e), of the U.S. Code; $26 million to projects authorized under Title 49, Section 5309(h), of the U.S. Code; and $100 million to projects authorized under Section 3005(b), of P.L. 114-94 (Fixing America's Surface Transportation Act); for a total of $1.7 billion. The law also directed that IIJA funding appropriated to FTA-Capital Investment Grants account be directed to projects authorized under Title 49, Section 5309(d), of the U.S. Code ($735 million) and to projects authorized under Title 49, Section 5309(h), of the U.S. Code ($850 million).

The House Appropriations Committee proposed an 87% reduction (-$2.1 billion) in FY2026 discretionary budget authority for FTA compared to FY2025 attributable to a 98% proposed reduction (-$2.2 billion) to the Capital Investment Grants account compared to FY2025. The Senate Appropriations Committee proposed a 7% reduction in FY2026 discretionary funding for FTA compared to FY2025, with the full decrease taken from the Capital Investment Grants account. Overall, the Senate Appropriations Committee proposed 36 times more in new discretionary budget authority for the Capital Investments Grants account ($2 billion) than the House Appropriations Committee ($54 million).

The FTA's Transit Infrastructure Grants account supports grants for ferry boat service, research and development, buses, bus facilities, earmarks, and more. The FY2026 appropriations law provided a combined total of $211 million for the Transit Infrastructure Grants account, including new discretionary budget authority ($23 million) and transfers of unobligated IIJA balances ($188 million). The Transit Infrastructure Grants account was provided 49% less in new discretionary budget authority, a reduction of $23 million, compared to FY2025 ($46 million). The IIJA transfers came from the following accounts: FTA-Transit Infrastructure Grants ($41 million), FTA-Electric and Low-Emitting Ferry Program ($5 million), FTA-Ferry Service for Rural Communities ($5 million), and FRA-Federal-State for Intercity Partnership Passenger Rail Grants ($138 million).

The FY2026 appropriations law made $148 million available for Community Project Funding/Congressionally Directed Spending projects within the Transit Infrastructure Grants account, accounting for 70% of total funding for the account.

Great Lakes Saint Lawrence Seaway Development Corporation (GLSLSDC)

GLSDC is a wholly owned government corporation that operates and maintains two locks on the St. Lawrence Seaway at Massena, NY, as well as other aspects of navigation infrastructure. (Canada owns and operates the other 13 locks on the seaway). GLSDC's budget is funded entirely from the Harbor Maintenance Tax, which is an ad valorem tax on imported and domestic cargo shipped through U.S. coastal and Great Lakes ports.¹⁴ The Harbor Maintenance Tax funds the Harbor Maintenance Trust Fund.

The FY2026 appropriations law provided $38 million to the Operations and Maintenance account, the sole account for Great Lakes Saint Lawrence Seaway Development Corporation (GLSLSDC). This funding level is a 7% reduction (-$3 million) compared to FY2025 ($41 million). The funding level matches the House Appropriations Committee's proposal. The Senate Appropriations Committee proposed a 1% decrease in funding for FY2026 compared to FY2025, matching the President's FY2026 request ($41 million).

Maritime Administration (MARAD)

The Maritime Administration (MARAD) supports programs for U.S. shipyards, ports, waterways, ships and shipping, vessel operations, ship disposal, and maritime education. MARAD also supports the U.S.-flag ocean shipping fleet and U.S. commercial shipyards.

The FY2026 appropriations law provided a 16% increase in funding for MARAD compared to FY2025. The FY2026 President's budget requested a 54% increase in funding for the MARAD, with the DOT budget documents¹⁵ noting that the funding increase would support the Administration's executive order "Restoring America's Maritime Dominance." The request reflected a 100% increase for the Tanker Security Program account, a 1,100% increase to the Assistance to Small Shipyard account ($105 million), and a 1,000% increase to the Port Infrastructure Development account ($550 million) compared to FY2025 enacted funding levels ($9 million and $50 million, respectively). The request also proposed an increase in grants for small shipyards (shipyards with fewer than 1,200 employees).¹⁶

For the Assistance to Small Shipyards account, the Senate Appropriations Committee proposed $30 million, which is a 243% increase compared to the FY2025 enacted amount ($9 million). The House Appropriations Committee proposed no new funding for this account in FY2026. The FY2026 appropriations law provided a 300% increase (+ $26 million) compared to FY2025.

For the Maritime Guaranteed Loan account, the House and Senate Appropriations Committees each proposed $4 million, a 93% reduction compared to the FY2025 enacted level ($54 million). The FY2026 appropriations law funded the account at a 92% reduction (-$50 million) relative to FY2025.

For the Port Infrastructure Development account, the House Appropriations Committee proposed a 13% reduction in funding for FY2026 compared to FY2025. All of the funding proposed by the House Appropriations Committee would be directed to Community Project Funding, comprising one-third of total funding proposed for MARAD in FY2026. The Senate Appropriations Committee proposed a 93% increase in funding for this account in FY2026 compared to FY2025. Of the amount proposed, 22% would be directed to Congressionally Directed Spending. The final FY2026 appropriations law provided a 107% increase (+$63 million) for the Port Infrastructure Development account compared to FY2025. Of the total, 63% is directed to Community Project Funding/Congressionally Directed Spending projects.

Pipeline and Hazardous Materials Safety Administration (PHMSA)

PHMSA is responsible for pipeline safety and the safe transport of hazardous materials (hazmat) by all transportation modes. PHMSA has the primary responsibility for the formulation, administration, and oversight of onshore pipeline safety regulations in the United States. The agency carries out such responsibilities through its Office of Pipeline Safety, which oversees pipeline operators, supports state pipeline safety agencies, and cooperates with other federal agencies that have pipeline safety responsibilities, among other duties. PHMSA also regulates the safe packaging of hazmat by road, rail, and water transport and provides grants for training emergency personnel to respond to hazmat incidents.¹⁷

The FY2026 appropriations law reduced funding by 4.3% (-$14 million) for PHMSA compared to FY2025. The FY2026 President's budget proposed no change in funding for PHMSA compared to FY2025 enacted funding levels.

The Senate Appropriations Committee proposed a new account for Design Review for facility design safety reviews, with funding of $200,000, and that amount of funding was ultimately provided for this account in the FY2026 appropriations law.

Office of Inspector General (OIG)

OIG conducts independent audits, investigations, and evaluations of DOT programs and operations, including contracts and grants. The FY2026 appropriations law reduced funding for OIG by 3% (-$3 million) compared to FY2025. The FY2026 President's budget proposed no change in funding for OIG compared to FY2025. The House Appropriations Committee proposed a 10% reduction in funding for the Salaries and Expenses account relative to FY2025, while the Senate Appropriations Committee proposed a funding level that matches the FY2025 level.

Federal Motor Carrier Safety Administration

FMCSA was established to improve highway safety through regulation of equipment and operating standards for commercial motor vehicle operators. FMCSA receives budget authority through the IIJA in the form of contract authority, with funds drawn from the highway account of the Highway Trust Fund. The IIJA also provided funding to FMCSA through multiyear advance appropriations from the General Fund. FMCSA does not generally receive regular annual discretionary appropriations.

IIJA Transfers

As noted earlier, the FY2026 appropriations law included a number of transfers of IIJA advance appropriation funding. Those transferred funds serve to supplement—or in some cases replace—regular annual appropriations provided in the bill. The IIJA transfers included in P.L. 119-75 are summarized below.

Federal Highway Administration (FHWA)

Of the total $2.4 billion in funding made available for FHWA in FY2026, 61% ($1.5 billion) reflect transfers from other accounts.

Transfers to FHWA from Other Accounts

The FY2026 appropriations law transferred a total of $375 million in unobligated balances of amounts appropriated to various accounts and activities in Title VIII, Division J of the IIJA to FHWA's Highway Infrastructure Programs account, including the following:

• $20 million in unobligated balances of amounts appropriated for FY2025 and FY2026 for FMCSA's Motor Carrier Safety Operations and Program account.
• $204.9 million in unobligated balances of amounts appropriated for FY2022, FY2023, FY2024, FY2025 and FY2026 for OST's Strengthening Mobility and Revolutionizing Transportation Grant Program.
• $50 million in unobligated balances of amounts appropriated for Section 801 of Division J of the IIJA under the Office of the Secretary of Transportation (OST) for the costs of award, administration, or oversight of financial assistance of discretionary programs administered by the Office of Multimodal Infrastructure and Freight.
• $100 million in unobligated balances of amounts appropriated for FY2026 for PHMSA's Natural Gas Distribution Infrastructure Safety and Modernization Grant Program.

Transfers from FHWA's IIJA Accounts to FHWA's Highway Infrastructure Programs Account

The remaining $1.1 billion of budget authority transferred to FHWA's Highway Infrastructure Programs account in FY2026 comes from unobligated balances of amounts appropriated to the IIJA's FHWA Highway Infrastructure Programs account. These include the following:

$125 million in unobligated balances from amounts appropriated for FY2023, FY2024, FY2025, and FY2026 for operations and for administration for FHWA activities.

• $75 million in unobligated balances from amounts appropriated for FY2022 for the establishment of the Joint Office of Energy and Transportation.
• $300 million in unobligated balances from amounts appropriated for FY2024, FY2025, and FY2026 for additional technical assistance to states and localities administered as discretionary grants under the National Electric Vehicle Infrastructure Formula (NEVI) program in paragraph (2) of Title VIII of Division J of the IIJA.
• $504 million from unobligated balances as of January 31, 2026, for FY2022, FY2023, FY2024, FY2025, and FY2026 for the National Electric Vehicle Infrastructure Formula (NEVI) program for activities in paragraph (2) of Title VIII of Division J of the IIJA.
• $90 million from amounts appropriated for FY2024, FY2025, and FY2026 for the reduction of truck emissions at port facilities program for activities at paragraph (5) of Title VIII of Division J of the IIJA.

Federal Aviation Administration (FAA)

For FAA, the FY2026 appropriations law transfers a total of $369 million in IIJA unobligated balances, including the following:

• $300 million in unobligated balances appropriated for FY2023, FY2024, FY2025, and FY2026 for administration costs for FAA's Airport Infrastructure Grants to the Grants-in-Aid for Airports account (Airport Discretionary Grants).
• $68.7 million in unobligated balances appropriated for FY2023, FY2024, FY2025, and FY2026 for administration costs for FAA's Airport Terminal Program to the Grants-in-Aid for Airports account (Airport Discretionary Grants).

Federal Railroad Administration (FRA)

Of the $65 million provided to the Federal-State Partnership for Intercity Passenger Rail account in the FY2026 appropriations law, $40 million is derived from transfers of unobligated balances previously appropriated for FY2026 activities related to financial assistance oversight and technical assistance for IIJA's FRA-Federal-State Partnership for Intercity Passenger Rail account.

Of the $137 million made available under the CRISI account in the FY2026 appropriations law, $130 million (95%) was derived from IIJA unobligated balances previously appropriated for FY2025 and FY2026 for activities related to financial assistance oversight and technical assistance under the IIJA's FRA-CRISI account.

The House committee proposed the transfer of $2.8 billion of unobligated balances of supplemental funding appropriated by the IIJA to Federal-State Partnership for Intercity Passenger Rail Grants (49 U.S.C. §24911). Of this amount, the House bill would have transferred another $500 million in Federal-State Partnership funding to the existing Consolidated Rail Infrastructure and Safety Improvements (CRISI) rail grant program, $925 million for the existing Northeast Corridor Grants to the National Railroad Passenger Corporation account (instead of appropriating new discretionary budget authority), and $1.39 billion for the existing National Network Grants to the National Railroad Passenger Corporation.

Federal Transit Administration (FTA)

Of the $211 million made available under the Transit Infrastructure Grants account in the FY2026 appropriations law, $188 million is derived from transfers of unobligated balances previously appropriated to the following IIJA accounts: FTA-Transit Infrastructure Grants ($41 million), FTA-Electric and Low-Emitting Ferry Program ($5 million), FTA-Ferry Service for Rural Communities ($5 million), and FRA-Federal-State for Intercity Partnership Passenger Rail Grants ($138 million).

Further, the law transferred funding previously appropriated to the IIJA's FTA-Capital Investment Grants account to projects authorized under Title 49, Section 5309(d), of the U.S. Code ($735 million) and to projects authorized under Title 49, Section 5309(h), of the U.S. Code ($850 million).

National Highway Traffic Safety Administration (NHTSA)

For NHTSA, the FY2026 appropriations law included transfers totaling $129 million in IIJA unobligated balances, including the following:

• $79 million in unobligated balances of amounts appropriated for FY2023, FY2024, FY2025 and FY2026 for NHTSA's Supplemental Highway Traffic Safety Programs account to NHTSA's Operations and Research account. The House committee had proposed a transfer of $78 million between the two accounts. The Senate committee had proposed a transfer of $95 million between the two accounts.
• $50 million in unobligated balances of amounts appropriated for FY2026 for NHTSA Crash Data account to NHTSA's Operations and Research account. The Senate committee had proposed a transfer of funds matching this provision.

The transfer of $129 million and the $71 million in new discretionary budget authority for "Operations and Research" bring the FY2026 funding levels to 10% below (-$23 million) FY2025 funding levels ($223 million).

Earmarks

As noted earlier, the THUD appropriations bill is one of the largest sources of Community Project Funding/Congressionally Directed Spending—commonly referred to as earmarks—in the annual appropriation process. In FY2025 no earmarks were included in the year-long continuing resolution. For FY2026, as is common, the President's budget requested no earmarked funding. The House Appropriations Committee bill proposed $1.43 billion for Community Project Funding in FY2006, which is 6.4% of total gross appropriations the bill proposed for DOT. The Senate Appropriations Committee bill proposed $992 million in Congressionally Directed Spending projects, which is 3.7% of total gross appropriations that proposed for DOT by the bill.

The FY2026 appropriations law provided a total of $2.4 billion for earmarks, as shown in Table 5. This total is 14% less funding for Community Project Funding/Congressionally Directed Spending than was provided in FY2024.

FAA–Airport Discretionary Grants received nearly 13% more in earmarked funding in FY2026 compared to FY2024. OST–Transportation Planning, Research, and Development received 233% more funding for earmarked projects in FY2026 compared to FY2024. The following accounts received less earmarked funding in FY2026 compared to FY2024: FHWA–Highway Infrastructure Programs (-24%), FTA–Transit Infrastructure Grants (-29%), FRA–Consolidated Rail Infrastructure and Safety Improvements (-12%), and MARAD–Port Infrastructure Development Program (-7%).

Selected Administrative Provisions

The following summarizes selected administrative provisions, by agency, that were included in the FY2026 appropriations law.

Federal Aviation Administration

For FAA, there are several administrative provisions addressing air traffic controllers:

• Section 119J directs the FAA Administrator to provide a spending plan and briefing of activities funded by P.L. 119-75 and Section 40003 of P.L. 119-21 for air traffic control modernization efforts within 30 days of the enactment of P.L. 119-75 and each month thereafter during FY2026.
• Section 119G prohibits the use of funds for efforts to privatize or separate air traffic organization functions in FAA.
• Section 119H prohibits the use of funds of the construction of a new Air Traffic Control Training Academy except for the existing Training Academy at the Mike Monroney Aeronautical Center.

Federal Highway Administration

For FHWA, Section 124 allows states or territories that have been awarded Community Project Funding/Congressionally Directed Spending funding to apply funds within 25 miles of the original general geographic area of a project if less than 10% of project funding available as of October 1, 2025, has been obligated.

In Sections 125 and 126, the law rescinds and then re-appropriates unobligated balances of funds provided by the IIJA for Nationally Significant Freight and Highway Projects program (also known as INFRA–Infrastructure for Rebuilding America and for the Bridge Investment Program):

• Section 125 rescinds unobligated balances appropriated in Division J of the IIJA to the Federal Highway Administration for the Nationally Significant Freight and Highway Projects program (also known as INFRA–Infrastructure for Rebuilding America) at Title 23, Section 117 of the U.S. Code under the IIJA's Highway Infrastructure Programs account. Additional new budget authority for FY2026 is to be provided that is equivalent to the amount rescinded for awards made in FY2023. The funding is to be made available until September 30, 2031.
• Section 126 rescinds unobligated balances appropriated in Division J of the IIJA to the Federal Highway Administration for the Bridge Investment Program at Title 23, Section 124 of the U.S. Code under the IIJA's Highway Infrastructure Programs account. Additional new budget authority for FY2026 is to be provided that is equivalent to the amount rescinded for awards made in FY2023. The funding is to be made available until September 30, 2031.

Federal Motor Carrier Safety Administration

For FMCSA, in Section 130, the FY2026 appropriations law prohibits DOT from using funding to "implement, administer, or enforce" requirements of Section 31137 of Title 49 of the U.S. Code or regulations related to the use of electronic logging devices by commercial motor vehicle operators.

Section 131 requires the Secretary of Transportation to update regulations to ensure that non-compliance with Section 391.11(b)(2) of Title 49, Code of Federal Regulations results in an out-of-service order. This provision was included in the Senate committee's bill.¹⁸

Federal Railroad Administration

For FRA, Section 156 of the FY2026 appropriations law rescinds $950 million unobligated balances, including $929 million in funding once directed to high-speed rail corridor development in California.¹⁹

The House committee bill would have prohibited the use of funds on high-speed rail corridor development in California, high-speed corridor rail development in Texas, and inter-city passenger corridor rail development in Minnesota.²⁰

National Highway Traffic Safety Administration

For NHTSA, Section 141 of the FY2026 appropriations law prohibits the use of funds to encourage illegal drug or alcohol use in NHTSA's national impaired driving advertising campaigns.

Federal Transit Administration

For FTA, Section 164 of the FY2026 appropriations law requires that "none of the funds made available by the Act be used to impede or hinder project advancement and approval" for Capital Investment Grant projects where applicants are seeking a 40% federal contribution of project costs.²¹ This provision was included in the Senate committee's bill.

Sections 165 and 166 make $195 million in FTA's unobligated balances available for activities related to the 2026 Olympic and Paralympic Games ($94 million), as authorized by Section 1223(e) of P.L. 105-178, and for the 2026 FIFA World Cup ($100 million).

The FY2026 appropriations law directs that funding for activities related to the 2026 Olympic and Paralympic Games is to be derived from unobligated balances from the Alternatives Analysis Program (49 U.S.C. §5339), funding eligible for "bus and bus-related equipment and facilities" under the Capital Investment Grants program at 49 U.S.C. §5309, and ''Alternative Transportation in Parks and Public Lands'' (49 U.S.C. §5320). Further, funding for activities related to the 2026 FIFA World Cup is to be derived from unobligated balances from the Clean Fuels Program (49 U.S.C. §5308), the Jobs Access and Reverse Commute Formula Grants (49 U.S.C. §5316), the ''New Freedom'' program (49 U.S.C. §5317), and the ''Rural Transportation Accessibility Incentive Program'' (P.L. 105-178 §5316).

The Senate committee bill would have made $146 million in unobligated balances available for activities related to the 2026 Olympic and Paralympic Games ($68 million) as authorized by Safe, Accessible, Flexible, Efficient Transportation Equity Act (SAFETEA; P.L. 109-59), and for the 2026 FIFA World Cup ($78 million).²²

Selected General Provisions for DOT

Section 194 of the FY2026 appropriations law directs the Secretary of Transportation to issue a notice of funding opportunity (NOFO) to award unobligated and uncommitted funding provided under prior appropriations acts and at Section 11101(c)(1)(E) of the IIJA for six new university transportation centers (UTC).²³ The law directs the Secretary to prioritize specific applicants. Applicants previously selected as a UTC for transportation infrastructure durability and composite materials research were required to re-compete for funding prior to the end of their five-year term, and applicants currently participating in DOT's Advanced Research Projects Agency—Infrastructure (ARPA-I) program are prioritized for funding in the law. Applicants with former UTC designations that were cancelled by DOT in May 2025 and have not been reinstated are also prioritized. Of the 35 UTCs established in 2023, there are currently 6 that focus on transportation infrastructure durability research.²⁴ DOT cancelled seven grants to UTCs in May 2025.²⁵

Title II: Department of Housing and Urban Development

Overview

HUD is the nation's housing agency. The programs and activities it administers are designed primarily to address housing problems faced by households with very low incomes or other special housing needs, and to expand access to homeownership.²⁶ The largest share of HUD's budget is devoted to its rental assistance programs: Section 8 Housing Choice Vouchers; project-based rental assistance via Section 8, Section 202, and Section 811; and public housing. These programs, which serve over 4.6 million households, provide subsidies to allow low-income recipients to pay below-market, income-based rent.

Two flexible block grant programs—the HOME Investment Partnerships Program (HOME) and the Community Development Block Grant (CDBG) program—help states and local governments finance a variety of housing and community development activities designed to serve low-income families. The Indian Housing Block Grant and the Indian Community Development Block Grant programs provide funds for Indian tribes to address their own housing and community development needs.

Other more specialized grant programs help communities meet the needs of homeless persons (through the Homeless Assistance Grants, namely the Continuum of Care and Emergency Solutions Grants programs), including those living with HIV/AIDS (through the Housing Opportunities for Persons with AIDS program). Additional programs fund fair housing enforcement activities and lead-based paint hazard identification and remediation, along with other healthy homes initiatives.

HUD's Federal Housing Administration (FHA) insures mortgages made by lenders to homebuyers with low down payments and to developers of multifamily rental buildings containing relatively affordable units. FHA collects fees from borrowers with FHA-insured mortgages, which are used to sustain its insurance funds. The Government National Mortgage Association (GNMA), or Ginnie Mae, is also a part of HUD and it guarantees securities made up of federally insured or guaranteed mortgages.

Table 6 provides detailed appropriations information for HUD accounts and selected subaccounts, comparing FY2025 enacted to FY2026.

Selected FY2026 HUD Appropriations Topics

Rental Assistance

Among the largest expenses in HUD's budget is the annual cost of maintaining assistance for the nearly 5 million families who are served by rental assistance programs.²⁷ Combined, funding for HUD's rental assistance programs accounted for 82% of HUD's gross discretionary appropriations in FY2025, most of which is used to maintain assistance for currently-assisted families. The cost of maintaining, or renewing, rental assistance—particularly in the Housing Choice Voucher and the project-based rental assistance programs—typically increases each year, driven largely by rental cost increases outpacing increases in tenant incomes.

The President's budget for FY2026 requested no new funding for HUD's rental assistance and related programs, and instead requested funding for a new State Rental Assistance Program. According to HUD's FY2026 Congressional Budget Justifications,²⁸ under this new program, states would have received allocations based on a formula that would take into account data on rental assistance in prior years and could favor assistance provided to elderly or disabled residents over assistance to non-elderly, non-disabled households. The documents also stated that the intent of the proposal was to allow states to design rental assistance programs that best meet their needs and to prioritize the housing needs of low-income elderly and disabled households. Under this proposal, rental assistance to non-elderly, non-disabled households would be capped at two years; currently, there is no time limit on rental assistance.

The President's budget documents note that this proposal would require enactment of authorizing legislation. As of the date of this report, no further details or draft authorizing legislation has been released.

As shown in Table 7, the amount of funding requested for the State Rental Assistance Program (SRAP) for FY2026 is 42% lower than the amount of funding allocated to federal subsidies for rental assistance in FY2025, when HUD's rental assistance programs received a combined $62.9 billion.

Like the House and Senate Appropriations Committee-reported bills, the FY2026 appropriations act did not adopt the President's SRAP request and instead continues to fund each of HUD's rental assistance programs. The FY2026 enacted funding level for the rental assistance programs combined reflects a 6% increase over FY2025.

Emergency Housing Vouchers

Emergency Housing Vouchers (EHVs) are Housing Choice Vouchers (HCVs) for persons who are homeless or at high risk of housing instability. They were funded by a one-time mandatory appropriation of $5 billion in Section 3202 of the American Rescue Plan Act in 2021 (ARPA; P.L. 117-2). HUD used this funding to award via formula allocation 70,000 new vouchers to local public housing authorities (PHAs) across the country in May 2021.²⁹ HUD stated at the time that it was providing five years of funding for each voucher, and that future funding would be determined at a later time. Thus, the number of EHV vouchers was intended to decrease over time, as families exited the program and their vouchers were not reissued.

HUD obligated remaining EHV funding to PHAs in spring 2025. The Department estimated that funding would be sufficient to support EHV vouchers into calendar year 2026,³⁰ but later guidance acknowledged that funding may not be sufficient to last through the end of 2026.³¹

HUD's EHV data dashboard indicated there were approximately 50,000 EHV vouchers under lease as of the beginning of calendar year 2026.³² A number of low-income housing advocacy groups and others called for Congress to provide additional funding to renew EHVs as a part of FY2026 HUD appropriations.³³

Funding for the renewal of EHVs was not included in the President's FY2026 budget request to Congress, nor in the House or Senate committee versions of the FY2026 THUD spending bill. The final full-year funding law did include funding that may be used to support EHVs. Specifically, the law provided increased funding for tenant protection vouchers in the Tenant-Based Rental Assistance account (relative to FY2025 and the House and Senate committee bills) and expanded the traditional eligible uses of those funds to include providing assistance to PHAs that would otherwise be required to terminate EHVs for families as a result of insufficient funding. The act also contains a provision allowing PHAs to engage in "over-leasing" (administering more than their authorized number of vouchers) on a temporary basis in order to absorb EHV families into their regular voucher programs.

Homeless Assistance

The President's FY2026 budget proposed to fund the Homeless Assistance Grants account at just below (-0.7%) the FY2025 enacted level. However, the budget proposed a significant change in the way funding would be allocated to grantees. It proposed to end funding for competitive Continuum of Care (CoC) grants and to instead fund formula grants through the Emergency Solutions Grants (ESG) program. While CoC and ESG have some eligible activities in common, CoC grants can be used for two interventions that ESG grants cannot: permanent supportive housing and transitional housing. In FY2024, 62% of CoC funds were used for permanent supportive housing and 7% for either transitional housing or joint transitional housing/rapid rehousing projects.³⁴

Neither the House committee-passed bill nor the Senate committee-passed bill included the President's proposal to redirect CoC funding to ESG. The House committee bill would have provided $3.858 billion for CoC grants (+9% relative to FY2025) and $290 million for ESG (the same level as FY2025); the Senate committee bill would have provided $4.023 billion for CoC grants (+14% relative to FY2025) and the same level as the House committee bill and FY2025 for ESG. Similarly, the full-year appropriations law continued funding CoC grants along with ESG, appropriating $4.010 billion CoC grants and $290 million for ESG.

The FY2026 appropriations law also contained a general provision governing the allocation of FY2025 CoC grants. Specifically, it provided that FY2025 CoC grants expiring through March 2026 must be renewed for 12 months, and that if FY2025 awards have not been made at the start of the second and third quarters of calendar year 2026, remaining expiring grants shall also be renewed. This directive follows proposed policy changes and related litigation about the FY2025 CoC grant award process (for more information, see CRS Insight IN12626, HUD's FY2025 Continuum of Care Program Competition).

Native American Programs

HUD administers several programs specifically for federally recognized Indian tribes and Alaska Native villages. These include formula and competitive grants through the Indian Housing Block Grant (IHBG) program and competitive grants through the Indian Community Development Block Grant (ICDBG) program, all of which are typically funded in the Native American Programs account, as well as funding for rental assistance through Tribal-HUD VASH, which has typically been funded in the Tenant-Based Rental Assistance Account.

The President's FY2026 budget request proposed lower funding for IHBG formula grants (-21% relative to FY2025) and ICDBG (-93% relative to FY2025), and proposed no new funding for IHBG competitive grants. It also proposed including $10 million to renew existing Tribal HUD-VASH rental assistance in the Native American Programs account rather than the Tenant-Based Rental Assistance Account.

The House committee-reported bill proposed the same amount of funding for the Native American Programs account as FY2025; funding for the IHBG and ICDBG programs would have been kept at the same levels as FY2025, and the bill would have continued to fund Tribal HUD-VASH in the TBRA account. The Senate committee-reported bill proposed $10 million more for the Native American Programs account compared to FY2025, reflecting the inclusion of $10 million in Tribal HUD-VASH funding in the account, consistent with the President's budget request. The Senate committee bill would have provided the same amount of funding for IHBG formula grants as FY2025, but it would have provided $50 million less for IHBG competitive grants ($100 million compared to $150 million) and $50 million more for ICDBG ($125 million compared to $75 million).

The FY2026 appropriations law included the same overall funding level for Native American Programs as proposed by the Senate committee bill, but with a different distribution. The law includes the same funding for formula grants as FY2025, but less for competitive grants ($125 million, compared to $150 million in FY2025) and more for ICDBG ($100 million, compared to $75 million in FY2025). Like the Senate committee bill and as proposed by the President, Tribal HUD-VASH is included in the Native American Programs account ($10 million).

Another program, the Native Hawaiian Housing Block Grant, provides funding to Hawaii's Department of Hawaiian Home Lands to use for housing activities for Native Hawaiians eligible to reside on the Hawaiian Home Lands. In FY2025, $22 million was appropriated for this program. The President's budget proposed no new funding, stating that it "recognizes a greater role for State and local governments, the private sector, and nonprofits to address community and economic development needs in localities across the Nation."³⁵ The House committee-reported bill proposed $18 million for the program (-18% relative to FY2025), while the Senate committee bill proposed maintaining the FY2025 funding level. Like the Senate committee bill, the FY2026 appropriations law continues funding for the program at the FY2025 level ($22 million).

Proposed Elimination of Grant Programs

The President's FY2026 budget proposed to eliminate funding for several HUD grant programs, all of which were ultimately funded in the FY2026 final appropriations law.

The largest grant program that was slated for elimination, which was funded at $3.3 billion in FY2025, is the Community Development Block Grant (CDBG) program. The program provides formula grant funding to states and localities to fund various community development activities. Eligible activities include planning, public works and facilities, housing, public services, and economic development. The President's budget request justified CDBG's elimination citing "poorly targeted" and "wasteful" projects.³⁶ H.R. 4552 proposed funding the program at the FY2025 level and S. 2465 proposed funding it at $3.1 billion, a 6% reduction relative to FY2025 and the House committee-proposed level. The FY2026 appropriations law continued funding for CDBG at the FY2025 level.

Two related competitive grant programs—funded in the CDBG account—were also proposed for no new funding in the President's budget: the Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment (SUPPORT) program, which funds opioid recovery housing, and the Pathways to Removing Obstacles to Housing (CDBG-PRO Housing) competition, which provides grants for removing barriers to affordable housing development. SUPPORT was proposed to be funded at the FY2025 level ($30 million) by both the House and Senate committee bills; CDBG PRO-Housing would have received no funding in the House committee bill, but $60 million in the Senate committee bill. The FY2026 appropriations law included $30 million for SUPPORT and $50 million for PRO-Housing.

The HOME Investment Partnerships block grant program, which provides formula grant funding to states and localities to fund various affordable housing activities, was also proposed for elimination by the President's FY2026 budget. Funded at $1.25 billion in FY2025, eligible activities include new construction, rehabilitation, and acquisition of both rental and homeownership housing, as well as tenant-based rental assistance. The President's budget justifications for the HOME Investment Partnership's block grant contend as justification for the program elimination that "[t]he Federal Government's involvement increases the regulatory burden of producing affordable housing."³⁷ H.R. 4552 included the President's proposal to provide no new funding for the program in FY2026, but the committee report provided a different rationale, citing grantees' unspent balances of emergency funding allocated by the American Rescue Plan Act of 2021 (P.L. 117-2).³⁸ This emergency funding is referred to as HOME-ARP. Of the $4.95 billion in HOME-ARP funding allocated to state and local grantees (including $25 million to existing technical assistance providers), $4.09 billion was unspent as of June 2025, and an additional $22 million was unobligated.³⁹ HOME-ARP funds, unlike formula HOME funds, must primarily benefit people who are homeless; are at risk of homelessness or housing instability; or are fleeing domestic violence. S. 2465 proposed to fund the HOME program at its FY2025 level, which is what was ultimately adopted in the FY2026 appropriations law.

H.R. 4552 proposed to rescind unobligated balances of FY2025 funding for a number of competitive grant programs for which HUD had not yet made awards. These included the folllowing:

• The Youth Homelessness Demonstration, funded within the Homeless Assistance Grants account at $107 million in FY2025 (rescission included in the account funding language)
• Public Housing grants for lead and other health hazard elimination, funded at $65 million in FY2025 (§235)
• Choice Neighborhoods grants, funded at $75 million in FY2025 (§235)
• Grants for Recovery Housing, as authorized by Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment [SUPPORT] for Patients and Communities Act of 2018 (P.L. 115-271), funded within the Community Development Fund account at $30 million in FY2025 (§235).
• Eviction Prevention Grants, funded at $20 million in the Research and Technology account in FY2025 (rescission included in the account funding language).

The Senate committee-passed bill does not include these rescissions, but did include one that was not included in the House committee-passed bill:

• Assisted Housing Inspections and Risk Assessments, funded at $50 million in FY2025, would have $25 million in unobligated balances rescinded (§249(f)). (Remaining unobligated balances from amounts provided in FY2024 for Fair Housing Activities would also be rescinded, but an equal amount would be appropriated for FY2026 (§250). This would allow for funds to be recaptured and reappropriated before their expiration date.

The FY2026 appropriations law included a rescission of $22 million in unobligated FY2025 Assisted Housing Inspections and Risk Assessments account, similar to the rescission proposed by the Senate committee-passed bill.

Earmarks

The Community Development Fund account is often used to fund Congressionally Directed Spending or Community Project Funds—commonly referred to as earmarks. These are provided through a set-aside for Economic Development Initiative (EDI) grants. Under the terms of the FY2025 full year CR, no funding was provided for EDI earmarks for the first time since FY2022. For FY2026, the President's budget, as is typical, requested no funding for EDIs (it included no funding for the CDF account as a whole). The House committee bill proposed $2.3 billion in EDI earmarks for FY2026 and the Senate committee bill proposed $1.3 billion; accounting for 3% and 2% of proposed total gross HUD appropriations, respectively. The FY2026 appropriations law included $3.6 billion in EDI earmarks, equivalent to 4% of total HUD gross appropriations in FY2026.

Select General Provisions

Each year, the THUD appropriations act includes dozens of General Provisions (GPs) for HUD, which involve administrative guidance on how funding provided in the act should and should not be used and, in some cases, amendments to laws that govern the department's programs and activities. Many of these GPs are carried over from year to year, but some new GPs are generally added each year. Some of the new GPs that were under consideration for the FY2026 appropriations cycle are discussed below (provisions from the House and Senate committee-reported bills that were ultimately enacted in the FY2026 appropriations law are noted).

House Committee-Reported Bill

• Section 236 would have prohibited HUD from providing funding to jurisdictions that refuse to coordinate with the Department of Homeland Security in relation to certain immigration enforcement activities.
• Section 237 would have prohibited HUD from using funding in the bill to enforce updated energy efficiency standards for newly-constructed HUD-assisted housing that were adopted in a notice that was finalized during the previous administration.
• Section 238 would have prohibited HUD from using funding in the bill to enforce a 30-day notice to vacate policy associated with evictions that was finalized during the previous administration.
• Section 239 would have given the HUD Secretary the authority to waive many of the rent rules governing federal rental assistance programs, potentially allowing landlords and program administrators to decrease or increase tenant rents or set other related requirements, as determined by the Secretary, for a period of no less than seven years.
• Section 240 would have allowed full funding fungibility for PHAs, allowing them to use their public housing operating and capital grants interchangeably. Current law only provides full fungibility to small PHAs; other PHAs are limited to transferring no more than 20% their funds between their operating and capital grants.

Senate Committee-Passed Bill

• Section 233 would have permitted the Secretary to award contract administrator awards for the Section 8 project-based rental assistance program through a cooperative agreement.
• Section 238 would have authorized the Secretary of HUD to forgive or restructure debts related to flexible subsidy loans on older assisted multifamily properties through FY2028 and would appropriate $3.3 million for this purpose. The FY2026 appropriations law included a version of this provision in Section 239 and included an appropriation of $2 million.
• Section 241 would have prohibited funds provided by the act from being used to close or relocate field or regional offices except as provided for in the act and would have required that HUD maintain at least one functional field office in each state.
• Section 242 would have required HUD to conduct rulemaking subject to federal law requiring for public participation and comment periods of no less than 60 days. The FY2026 appropriations law included this provision in Section 242.
• Section 243 would have required the HUD Secretary to submit to the House and Senate Committees on Appropriations a list with all grants, cooperation agreements, and contracts that were obligated and subsequently terminated or reduced in scope in 2025 or where the terms and conditions of agreements were changed or modified in FY2025, including an explanation for terminations or changes, and the affected recipients, location, and the source of funding.
• Sections 245-248 would have made certain changes related to Native American housing programs.
• Section 406 would have prohibited any funding in the bill from being used to relocate an office or reduce personnel without notifying the Housing and Senate Appropriations Committees 30 days in advance. As context, the HUD Secretary has announced his intent to move HUD headquarters out of the Weaver building to another location. S.Rept. 119-47 states

The Committee notes that HUD has recently announced its intention to move out of its headquarters building, and that a budget and timeline for such a move is still being developed. As such, the Department has not requested any funding in fiscal year 2026 to facilitate a transition out of the current headquarters space, and the Committee recommendation does not include any funding for that purpose at this time. The Committee directs the Department to brief the House and Senate Committees on Appropriations within 30 days of enactment of this act on: (1) the program of requirements developed for the HUD headquarters, (2) the total budget for the move, build-out, and maintenance of the new headquarters space, with agency responsibilities and sources of funding delineated between HUD and the General Services Administration, (3) the detailed timeline for the proposed move, and (4) any analysis of alternative buildings considered this year.

While the FY2026 appropriations law did not contain this provision, the accompanying explanatory statement included the following:

In addition to the direction provided under the heading ''Weaver Building'' in Senate Report 119–47, the agreement directs the Department to coordinate with the General Services Administration to identify and brief the House and Senate Committees on Appropriations on all potential financing options for Weaver Building close-out costs, including the substantial outstanding liability associated with prior capital improvements, given the uncertain availability of future funding.

Full-Year Appropriations Law

In addition to the general provisions already noted, the law contained several others that were not included in either the House or Senate committee-reported bills. These include the following:

• Section 244 establishes conditions related to the renewal of certain Continuum of Care projects expiring during 2026 (discussed in the "Homeless Assistance" section of this report).
• Section 425 of the Administrative Provisions renames the Foster Youth to Independence voucher program "The Melania Trump Foster Youth to Independence Initiative."

Title III: Related Agencies

The annual THUD appropriations bill generally provides funding for seven independent agencies that undertake activities related to transportation and/or housing:

• The U.S. Access Board is an independent federal agency designed to coordinate other federal agencies to promote accessible design and the development of accessibility guidelines and standards to ensure access to federally funded public infrastructure for persons with disabilities.⁴⁰
• The Federal Maritime Commission is an independent federal agency charged with regulating U.S. ocean commerce.⁴¹
• The Amtrak Inspector General is an independent organization charged with providing oversight of Amtrak's programs and operations.⁴²
• The National Transportation Safety Board (NTSB) investigates accidents, crashes, and other events in transportation.⁴³
• The Neighborhood Reinvestment Corporation (NeighborWorks America) is a congressionally chartered nonprofit that supports a network of community organizations that provide affordable housing, financial counseling, and resident engagement.⁴⁴
• The Surface Transportation Board is an independent federal agency is "charged with the economic regulation of various modes of surface transportation, primarily freight rail."⁴⁵
• The Interagency Council on Homelessness is an independent federal agency charged with coordinating the federal response to homelessness.⁴⁶

U.S. Interagency Council on Homelessness

Both the FY2026 President's budget and the House committee-reported bill proposed to eliminate funding for the USICH, while the Senate committee-reported bill proposed to cut funding in half, from $4 million in FY2025 to $2 million. The FY2026 appropriations law included $3 million for the USICH.

The USICH, authorized as part of the McKinney-Vento Homeless Assistance Act (P.L. 100-77, as amended), is made up of representatives from multiple federal agencies who, together with the USICH executive director and staff, are to coordinate efforts to address homelessness nationally. The USICH is also responsible for releasing a National Strategic Plan to End Homelessness and for supporting state and local governments and nonprofit organizations in their efforts to provide assistance to people experiencing homelessness, among other activities.

Footnotes

1.	The House and Senate use various terms when referring to these spending directives. The House Committee on Appropriations refers to this type of funding as Community Project Funding, and the Senate Committee on Appropriations refers to it as Congressionally Directed Spending. Both chambers have disclosure rules that these spending directives be disclosed in committee reports accompanying appropriations bills. Collectively, this type of spending is commonly known as "earmarks" and sometimes referred to as such for commonality and brevity. This report uses the terms Community Project Funding (CPF) when referring to disclosed House spending and Congressionally Directed Spending (CDS) when referring to disclosed Senate spending. These disclosed spending projects collectively are referred to as CPF/CDS or earmarks throughout the report. See CRS Report RS22866, Earmark Disclosure Rules in the House: Member and Committee Requirements, and CRS Report RS22867, Earmark Disclosure Rules in the Senate: Member and Committee Requirements.
2.	Related agencies include U.S. Access Board, Federal Maritime Commission, Amtrak Inspector General, National Transportation Safety Board (NTSB), Neighborhood Reinvestment Corporation (NeighborWorks America), Surface Transportation Board, and Interagency Council on Homelessness. These agencies are discussed in the "Title III: Related Agencies" section of this report.
3.	For more information about continuing resolutions, see CRS Report R46595, Continuing Resolutions: Overview of Components and Practices.
4.	For background on DOT modal agencies, see CRS Report R48651, U.S. Department of Transportation: Background on Modal Administrations, coordinated by John Frittelli.
5.	For more information, see CRS Report R48472, The Highway Trust Fund's Highway Account, by Ali E. Lohman.
6.	For more information, see CRS Report R44749, The Airport and Airway Trust Fund (AATF): An Overview, by Rachel Y. Tang and Bart Elias.
7.	For more information, see CRS Report R48863, Local and Regional Project Assistance Program: Background and Selected Considerations, by Jennifer J. Marshall.
8.	For more information, see CRS Report R47608, Federal Aviation Administration (FAA) Reauthorization Issues for the 118th Congress, coordinated by Bart Elias and Rachel Y. Tang.
9.	For more information, see CRS Report R47022, Federal Highway Programs: In Brief. In FY2025, FHWA received 11% of total budget authority in annual appropriations with ten percent ($8.1 billion) being emergency relief appropriated through the American Relief Act, 2025 (P.L. 118-158). For more on emergency relief see CRS Report R47724, Emergency Relief Program for Disaster-Damaged Highways and Bridges, by Ali E. Lohman.
10.	For more information, see CRS Report R48472, The Highway Trust Fund's Highway Account, by Ali E. Lohman.
11.	National Highway Traffic Safety Administration (NHTSA), "Laws and Regulations," https://www.nhtsa.gov/laws-regulations; 49 U.S.C. §301; 49 U.S.C. §303; 49 U.S.C. §321; 49 U.S.C. §325; 49 U.S.C. §327; 49 U.S.C. §329; and 49 U.S.C. §331.
12.	For more information, see CRS Report R47260, Intercity Passenger Rail: Federal Policy and Programs, by Ben Goldman.
13.	For more information, see CRS Report R47002, Federal Public Transportation Program: In Brief, by William J. Mallett.
14.	For more information, see CRS Report R44664, The Great Lakes-St. Lawrence Seaway Navigation System: Options for Growth, by John Frittelli; and CRS Report R47550, Shipping on the Great Lakes and St. Lawrence Seaway: An Update, by John Frittelli.
15.	For example, see DOT FY2026 Budget Highlights, https://www.transportation.gov/sites/dot.gov/files/2025-05/DOT_FY_2026_Budget_Highlights_508c.pdf.
16.	Maritime Administration, "Small Shipyard Grants," https://www.maritime.dot.gov/grants-finances/small-shipyard-grants.
17.	For more information, see CRS Report R44201, DOT's Federal Pipeline Safety Program: Background and Issues for Congress, by Paul W. Parfomak.
18.	S. 2465 §132.
19.	Federal Rail Administration terminated cooperative agreements No. FR-HSR-0118-12 and No. 69A36524521070FSPCA, which provided $929 million to California through the High-Speed Intercity Passenger Rail (HSIPR) Program grant as detailed in a letter to the California High-Speed Rail Authority on July 16, 2025, https://www.transportation.gov/sites/dot.gov/files/2025-07/FRA%20Acting%20Administrator%20Feeley%20Letter%20to%20Mr.%20Ian%20Choudri%207.16.25.pdf.
20.	H.R. 4552 §§153, 156, 157.
21.	S. 2465 §164.
22.	S. 2465 §§169-169A.; the Moving Ahead for Progress in the 21st Century Act (MAP-21; P.L. 112-141) repealed the Clean Fuels Program (49 U.S.C. §5308) and the Jobs Access and Reverse Commute Formula Grants (49 U.S.C. §5316). MAP-21 amended the Alternatives Analysis Program (49 U.S.C. §5339) and the general authority for the Capital Investment Grants program to remove "bus and bus-related equipment and facilities" as an eligible activity at 49 U.S.C. §5309. Under SAFETEA, funding authorized for these programs was to remain available until expended (P.L. 109-59 §3036).
23.	UTCs are authorized under 49 U.S.C. §5509.
24.	As of January 6, 2026, there are six UTCs that focus on transportation infrastructure durability research; DOT, "IIJA Centers and Grantees," January 6, 2026, https://www.transportation.gov/utc/iija-centers-and-grantees.
25.	DOT, "U.S. Transportation Secretary Sean P. Duffy Defunds Woke University Grants," May 2, 2025, https://www.transportation.gov/briefing-room/us-transportation-secretary-sean-p-duffy-defunds-woke-university-grants.
26.	For more information about federal housing assistance programs, see CRS Report RL34591, Overview of Federal Housing Assistance Programs and Policy, by Maggie McCarty, Libby Perl, and Katie Jones.
27.	Rental assistance programs include the Public Housing, Housing Choice Voucher, Section 8 project-based rental assistance, Section 202 Housing for the Elderly and Section 811 Housing for Persons with Disabilities programs.
28.	See https://www.hud.gov/sites/dfiles/CFO/documents/2026_CJ_Program_SRAP.pdf.
29.	HUD Notice PIH 2021-15.
30.	HUD Notice PIH 2025-07.
31.	HUD Notice PIH 2025-19.
32.	EHV Dashboard, accessed January 12, 2026.
33.	For example, see https://nlihc.org/resource/us-conference-mayors-passes-resolution-supporting-extension-emergency-housing-voucher; and https://clpha.org/sites/default/files/5.19.25_%20Housing%20Groups%20EHV%20Letter%20to%20Appropriations.pdf.
34.	See HUD FY2024 CoC Program Awards by Component, https://files.hudexchange.info/reports/published/CoC_AwardComp_NatlTerrDC_2024.pdf (accessed February 24, 2026).
35.	HUD FY2026 Congressional Budget Justification, p. 11-1.
36.	Administration's skinny budget request, Letter from Russell T. Vought, Director, Office of Management and Budget, to The Honorable Susan Collins, Chair, Senate Committee on Appropriations, May 2, 2025, p. 26, https://www.whitehouse.gov/wp-content/uploads/2025/05/Fiscal-Year-2026-Discretionary-Budget-Request.pdf (hereinafter, "Letter from Russell T. Vought").
37.	Administration's skinny budget request, Letter from Russell T. Vought.
38.	H.Rept. 119-212, p. 98.
39.	Department of Housing and Urban Development, Standard Form 133: Report on Budget Execution and Budgetary Resources, FY2025, Q3. MAX.gov, https://portal.max.gov/portal/document/SF133/Budget/FY%202025%20-%20SF%20133%20Reports%20on%20Budget%20Execution%20and%20Budgetary%20Resources.html.
40.	See https://www.access-board.gov/about/.
41.	See https://www.fmc.gov/about-the-fmc/.
42.	See https://amtrakoig.gov/about-us.
43.	See https://www.ntsb.gov/about/Pages/default.aspx.
44.	See https://www.neighborworks.org/About-Us.
45.	See https://www.stb.gov/about-stb/.
46.	See https://www.usich.gov/about-usich/.