Episode 123: FY27 Continuing Resolution Moves Through Congress

With federal government funding set to expire on September 30, 2026, Congress is on track to pass a continuing resolution rather than full FY2027 appropriations. The House passed its version of a CR before heading to recess — with no Trump Administration anomalies included — while the Senate is expected to introduce its own stopgap before breaking on August 7. For LIHTC investors, developers, and housing finance professionals, the key question is whether HUD-critical anomalies make it into the final deal. Key Takeaways: Federal funding expires September 30, 2026 — a CR is the base case, not a full-year spending bill. The House passed 3 of its 12 FY2027 funding bills; the Senate has released no CR text and no FY2027 bill language. The House CR includes zero anomalies requested by the Trump Administration — a significant omission for HUD program continuity. Senate Majority Leader Thune (R-SD) plans to bring a stopgap to the floor before August 7; the Senate version is expected to include some anomalies. Senate Appropriations Ranking Member Patty Murray (D-WA) called the House CR flawed and said it is unlikely to pass the Senate as written. HUD programs — including tenant-based rental assistance, project-based Section 8 renewals, and HOME — are funded through annual appropriations and are directly exposed to CR terms. Absence of HUD-specific anomalies could create operational disruptions to voucher renewals and rental assistance payment timing. A bicameral negotiation between the House's clean CR and the Senate's anomaly-inclusive version will play out over the coming weeks. For affordable housing stakeholders, the Senate CR text — when released — is the document to watch. Whether HUD programs receive anomaly protection will determine the operational risk heading into the fourth quarter. Monitor Senate Appropriations closely for any program-specific language affecting Section 8, HOME, or housing finance agency allocations. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.