LeadingAge: HUD Programs Boosted, Improved in Senate Bill
(July 28, 2025) As reported by LeadingAge, U.S. Department of Housing and Urban Development (HUD) housing programs found support in the Senate Appropriations Committee’s fiscal year 2026 (FY26) HUD funding bill, which passed out of the committee on July 24th.
The bill would provide increases beyond those in the House Committee’s bill to fully fund the renewal of HUD Section 8 Project-Based Rental Assistance (PBRA) contracts, Section 202 Supportive Housing for the Elderly Project Rental Assistance Contracts (PRACs), and Service Coordinator grants. The bill would also provide $4 million for rent increases for successful conversion of Section 202 PRACs through the Rental Assistance Demonstration (RAD) housing preservation program.
The Senate Committee bill is different than the one passed by the House Appropriations Committee on July 17th. Overall, the Senate bill would provide $73.3 billion for HUD for FY26, compared to $67.8 billion provided by the House bill. In addition to providing more funding for HUD, the bill does not include the House Committee’s sweeping and potentially harmful flexibilities for how housing authorities run the nation’s public housing and Housing Choice Voucher programs. Both bills reject the White House’s request to block grant HUD’s largest rental assistance programs and to cut HUD’s overall funding by more than 40%.
For HUD’s Section 202 program, the Senate bill would provide $972 million, a $40.6 million increase compared to FY25 funding and $22 million more than the House Committee’s bill. Of the $972 million provided for the Section 202 account, the Senate Committee’s bill includes $842 million for the costs associated with fully funding all annual PRAC renewals and amendments, $122 million to fund the renewal of existing Service Coordinators and congregate service grants, $4 million to support preservation transactions of Section 202 PRACs through RAD, and $4 million for HUD’s administrative costs.
Senate and House Majority appropriators both say that their bills’ funding levels are sufficient to fully renew existing PBRA and PRAC contracts in FY26.
To expedite the process of renewing existing Service Coordinator grants, the Senate bill includes authority for HUD to renew these grants every two years, rather than annually. LeadingAge members have experienced significant delays with Service Coordinator grants, and the association strongly supports this new policy solution.
Chair Susan Collins (R-ME) praised the bill for providing sufficient funding for continued HUD housing assistance to more than 4.6 million families and level funding for the HOME program. The House Committee’s bill cuts funding for public housing and Housing Choice Vouchers and eliminates funding for the HOME block grant program, which LeadingAge members rely on to preserve and expand the supply of affordable housing.
Vice Chair Patty Murray (D-WA) lauded the “serious bipartisan compromises” in the bill that “ensure folks back home have a roof over their heads” and that reject President Trump’s requested deep cuts to housing assistance.
“As I am also the Ranking Member of the Senate Aging Committee,” Transportation, Housing, and Urban Development (THUD) Appropriations Subcommittee Ranking Member Kirsten Gillibrand (D-NY) said, “I’m deeply concerned by the fact that seniors are the fastest growing age group among people experiencing homelessness. The bill helps our homeless response system adapt to the unfortunate reality that more and more seniors are experiencing.”
LeadingAge has been working for years to raise awareness and seek solutions from Congress to address the rapidly rising numbers of older adults experiencing homelessness. The report accompanying the Senate Committee’s bill notes that, “[f]or multiple years, this Committee has noted its concern regarding the growing population of seniors experiencing homelessness. With this national demographic shift, the homelessness response system needs to adapt to an aging clientele with increased service needs. The Committee directs HUD, in coordination with the United States Interagency Council on Homelessness (USICH), to provide a report to the House and Senate Committees on Appropriations within 270 days of enactment of this act that provides recommendation for additional flexibilities most needed by [Emergency Solutions Grants] and [Continuum of Care] grantees to better serve seniors experiencing homelessness and whether legislative changes are necessary to provide those flexibilities.”
It must be noted that the House Committee’s bill would eliminate all funding for USICH.
The Senate Committee bill provides $30 million for HUD’s Older Adults Home Modification Program, level with FY25 funding and $30 million more than the House Committee’s bill.
The Senate bill addresses several barriers to greater participation, including “streamlining environmental reviews, adjusting the cost per property cap to account for increased labor and materials costs, and encouraging rather than requiring the use of occupational therapists,” the Senate press release says. The bill squarely reflects advocacy by LeadingAge members in support of funding for HUD’s affordable housing programs for older adults, including programs to address rapidly rising homelessness and aging in community.
The Senate bill’s funding levels are likely to be the high-water mark for HUD funding for FY26; LeadingAge looks forward to advocating for them. The bill passed out of committee by a vote of 27-1. LeadingAge will provide additional analysis; in the meantime, read the Senate press release here, watch the Senate Committee’s July 24th markup here, and keep up with all FY26 HUD funding news in this LeadingAge serial post.
Contact: Annalyse Komoroske Denio, akomoroskedenio@leadingageny.org, 518-867-8866