Last week, the U.S. House of Representatives Committee on Appropriations passed a funding bill for the Department of Housing and Urban Development (HUD), increasing funding by $237 million for project-based Section 8 rental assistance for fiscal year 2026. In its proposed recissions budget submission, the Trump administration had asked Congress to cut the program by more than $26 billion, which would have caused serious problems for developers securing long-term financing for affordable housing projects.

The increase ensures renewal of contracts for Section 8 project-based developments for approximately 1.2 million households. Despite this increase, the funding measure would decrease HUD funding by nearly $940 million for FY 2026.