Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026
Sponsored By: Senator Cindy Hyde-Smith
In Committee
Summary
Appropriates FY2026 funding for the Departments of Transportation and Housing and Urban Development. It sets spending levels, program rules, and reporting requirements across aviation, highways, transit, rail, public housing, vouchers, homelessness programs, and housing finance.
Show full summary
- Families and renters: Provides major support for rental assistance with about $33.4 billion for tenant‑based rental assistance and additional renewal and emergency allocations for PHAs and voucher programs.
- Travelers and communities: Funds aviation and surface transportation with roughly $13.8 billion for FAA operations and large transit and capital grant pools to support highways, rail, and transit projects.
- Agencies, systems, and oversight: Funds agency operations and modernization including $365.0 million for HUD IT modernization and $60.0 million for DOT cybersecurity while adding transparency, reporting, and reprogramming controls.
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Bill Overview
Analyzed Economic Effects
38 provisions identified: 23 benefits, 5 costs, 10 mixed.
Tribal housing funding and rules
If enacted, HUD would make several changes that affect tribal housing. It would appropriate $1.111 billion for Native American Housing Block Grants and require HUD to compute each tribe's allocation two ways and give each tribe the larger amount. The bill would expand Section 184 guarantees (up to 100% at the Secretary's discretion), allow 30‑year loans and up to 40 years for some loan modifications, and clarify eligible 1‑ to 4‑family dwellings and Native Hawaiian eligibility under Section 184A. It also exempts certain Continuum of Care awards on tribal lands from some civil rights provisions and lets tribes carry out specified Section 106 activities when they receive grants.
Pipeline safety funding and projects
If enacted, $218,186,000 would be provided for the pipeline safety program through Sept. 30, 2028. The bill specifies fund sources and small set‑asides and directs at least $1,058,000 for the one-call State grant program. It would also let the Secretary use pipeline safety funds for construction or improvements at the Transportation Technology Center research facilities, but only after submitting an updated research plan and testing report and receiving Appropriations Committee approval.
More motor carrier safety funding
If enacted, the bill would provide large Highway Trust Fund support for motor carrier safety. It would appropriate about $536.6 million for motor carrier safety grants in FY2026 and about $390 million for FMCSA operations, including at least $63.1 million for IT and $14.07 million for research. Most grant subprograms get set subamounts and multi-year availability.
New student rules for Section 8
If enacted, tenant-based Section 8 assistance could not be provided to any individual who meets all eight listed tests. The tests include: enrolled as a higher education student; under age 24; not a veteran; unmarried; no dependent child; not a person with disabilities who received Section 8 by Nov. 30, 2005; not a youth who left foster care at 14 or older and at risk of homelessness; and not otherwise individually eligible (or with parents who are eligible) for Section 8. All eight conditions must apply to trigger the prohibition.
Cap on Amtrak employee overtime
If enacted, the bill would bar using these funds to pay any Amtrak employee more than $35,000 a year in overtime. Amtrak's President could waive the cap for specific employees for safety or operations. Amtrak must report recent years' overtime totals and waiver use to congressional appropriations committees within 60 days.
Public housing and tenant protections
If enacted, this package would change several HUD rules for public housing agencies (PHAs) and tenants. PHAs designated Moving to Work could reuse past Section 8 and 9 funds for MTW purposes. For PHA fiscal year 2026, PHAs could not charge Section 8 or Section 9 funds for any employee salary above the Executive Schedule Level IV rate. HUD must keep rental assistance attached to HUD-owned or HUD‑backed multifamily units during foreclosure and disposition when feasible. PHAs under receivership could still apply for competitive lead-hazard grants and use funds to meet lead-related settlement obligations. The bill also extends availability of certain disability demonstration rental funds so older obligations can be paid.
Changes to community loan programs
If enacted, the bill would make big changes to community finance tools. It would fund CDBG at $3.1 billion and limit planning administrative uses. It would allow up to $400 million in Section 108 loan guarantees for FY2026 with borrower fees to cover costs. It would expand Indian housing guarantee authority and subsidized principal up to $1.2 billion, while capping new Native Hawaiian loan guarantees at $28 million through 2027. HUD could also forgive or restructure small Flex Sub loan balances for qualifying owners, with $3,328,000 provided for implementation.
More HOME program funding
If enacted, the HOME Investment Partnerships Program would receive $1.25 billion, available until September 30, 2029. HUD would relax some statutory allocation threshold rules for this money and combine recaptured unobligated balances with the funds for formula allocation. HUD must notify grantees of their formula allocations within 60 days of enactment.
Moving and protecting rental assistance
If enacted for FY2026–FY2027, HUD could move project-based assistance, related debt, and low-income use rules from one multifamily property to another to keep assistance in service. Receiving projects must keep the same number and bedroom mix of low-income units, meet physical standards, and tenants may not be forced to leave until new units are ready. HUD would also let Office of Housing funds support RAD conversions and strengthen enforcement when owners fail inspections.
DOT Inspector General funding boost
If enacted, the Department of Transportation Office of Inspector General would receive $116,452,000 for salaries and expenses. The bill affirms the Inspector General's authority to investigate fraud and false statements by persons under DOT regulation. It also bars funds from being used to block the Inspector General's independent personnel authorities.
More federal rail grant funding
If enacted, $151,524,000 would be provided for Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants. About $51.524 million would fund specific directed projects (available until expended). The rest funds discretionary grants and includes a transfer from unobligated highway balances. The bill expands eligible projects to include railroad systems planning and lets certain holding companies of small railroads apply. The Secretary may withhold up to 2% for award and project oversight.
Limit sharing of DMV personal data
If enacted, the bill would bar any recipient of funds from this Act from sharing personal DMV records except as federal law allows. The restriction takes effect upon enactment. The bill also says the Secretary may not withhold funds from a grantee if a State fails to follow this rule.
Amtrak worker protections and patrols
If enacted, Amtrak could not use funds from this Act in ways that violate the WARN Act. The bill would also bar using funds under certain Amtrak grant headings to reduce Amtrak Police uniformed officer staffing below the level on May 1, 2019.
Event transit support for host cities
If enacted, the bill would set aside federal money to help transit in major event host cities. It would provide $68 million for transit supporting the 2028 Olympic and Paralympic events and about $78.1 million for U.S. World Cup 2026 host cities. Grants may pay for planning, capital, and operating costs. Recipients can generally choose a federal share up to 80 percent (90 percent for some bus systems for the Olympics). Funds must be obligated within short, event-related windows after each event ends.
Hazmat and pipeline safety funding
If enacted, the bill would fund hazardous materials and pipeline safety programs, training, and grants. It would provide up to $46.8 million for emergency preparedness grants, about $73.66 million for PHMSA hazardous materials safety work (with $12.07 million available through 2028), and at least $5 million for an LNG safety center. It also sets aside funds—at least $2 million—from a $31.3 million PHMSA account for technical assistance grants and requires a Notice of Funding Opportunity and awards by specified deadlines.
No new FAA fees; keep observers
If enacted, the bill would stop the FAA from using these Act funds to make rules that create new aviation user fees not already authorized. It would also bar using funds to end the contract weather observers program at any airport, preserving those jobs and services.
More housing and homelessness funding
If enacted, the bill would provide several targeted housing grants and set-asides to help low-income households, tribes, public housing, and people living with HIV/AIDS. It would fund Choice Neighborhoods ($40 million), grants to remove local housing barriers ($60 million), HOPWA ($529 million), Native American competitive housing grants ($100 million), self-sufficiency and Jobs‑Plus ($211.4 million), Indian Community Development grants ($125 million), Tribal training ($7 million), and Tribal HUD‑VASH noncompetitive awards ($10 million). Grants must meet program rules like long affordability periods, matching funds, or local consent.
Deadlines for EV charging guidance
If enacted, the Transportation Secretary would have to publish draft NEVI Formula Program guidance for public comment within 30 days of enactment and final NEVI guidance within 120 days of enactment. The deadlines aim to speed state planning for electric vehicle charging infrastructure.
Federal rail research and grants
If enacted, the bill would fund rail research and intercity rail projects. It would provide $43 million for railroad research and at least $2.5 million for a center of excellence. It would also appropriate $75 million for Federal‑State intercity rail grants and direct $5 million to rehabilitate Washington Union Station. Funds remain available until spent, with a small share allowed for oversight.
Finish prior DOT awards
If enacted, the bill would rescind leftover unobligated balances from certain FY2022 and FY2023 DOT programs and reappropriate the same amounts on September 30, 2026. The reappropriated funds would be available without new competition to finish awards made for local and regional projects, bridges, and nationally significant freight and highway projects, and some reauthorizations are designated as emergency requirements.
Grants to improve U.S. ports
If enacted, the bill would provide about $96.5 million for port improvement grants. About $75 million would go to coastal, inland river, and Great Lakes ports, with a $1 million minimum award size. About $21.5 million would fund congressionally directed port projects. The money would remain available until spent.
Lower local match and buy rules for transit
If enacted for FY2026, certain transit grants could pay up to 100% of eligible project costs for funds obligated in that year. Federally recognized Tribes could also elect up to 100% for specified transit funds. The bill would clarify transit property rules by replacing 'right‑of‑way' with 'real property interests' and add transfer limits tied to equipment purchase dates. It also requires public notice before Buy America waivers and reclaims certain unobligated highway balances to re‑appropriate them for completing past awards.
Ban some firms from Act contracts
If enacted, funds under this Act could not be used to award or amend any contract or subcontract to an entity that, on or after December 20, 2019, met the criteria in 49 U.S.C. §5323(u). The ban would also extend to reorganized, successor, subsidiary, affiliate, joint venture, or co‑owned enterprises of such entities, regardless of whether the successor now meets the criteria.
Changes to homeless assistance funds
If enacted, half of certain recaptured McKinney Act budget authority or cash would be rescinded or remitted to the Treasury. The other half would be available to State housing finance agencies or local agencies with HUD‑approved projects settled after January 1, 1992. Up to 15% of the remaining recaptured amounts may be used as incentives to encourage owners to refinance at lower rates. Separately, Continuum of Care grant recipients could count program income toward their matching requirements for grants from FY2015 through FY2026 if those costs supplement CoC programs.
Trucking driver rules and limits
If enacted, the bill would change several trucking rules. It would bar using funds to require inward-facing cameras or DOL registration for the safe driver apprenticeship pilot. It would also block ELD enforcement for operators hauling livestock or insects. At the same time, it would require regulators to make a particular driver qualification violation trigger an out-of-service order. These changes reduce some compliance costs but tighten enforcement for certain noncompliance.
More congressional notice for awards
If enacted, HUD and DOT would have to tell the House and Senate Appropriations Committees at least three full business days before announcing or changing certain grants, loans, or research awards. The Secretary must give lists of relevant loan and grant instruments first. The rule also covers pipeline safety research and quick emergency releases.
HUD leftover funds rescinded, reallocated
If enacted, the bill would permanently rescind several specified leftover HUD balances from past appropriations. In some cases it would reappropriate the same amounts for short periods so certain projects or FY2024 Fair Housing awards can finish. The net effect reduces some HUD program balances while allowing targeted finishing funds in limited cases.
HUD office, contracting, and rule changes
If enacted, the bill would change many HUD administrative rules. HUD must give 60 days for public comment on annual contract changes. It must keep at least one staffed field office in each state. Existing promise zone designations would stay in effect. Small PHAs with 400 or fewer units may opt out of some asset management rules. HUD may award some administrator funds through cooperative agreements and limit use of family self‑sufficiency (FAM) scores in funding. HUD may not use funds to investigate otherwise lawful advocacy. Unspent PD&R research funds could be reobligated for similar research.
Flexibility for DOT grant funds
If enacted, several DOT administrative flexibilities would change how grants and funds are handled. States could reuse earmarked highway amounts designated more than 10 years earlier for eligible projects if they notify the original DOT and report annually; those funds would be available to obligate for three years after notice and have use conditions. The Secretary could correct past formula overallocations by offsetting a recipient's next allocation, with spreading allowed on request. The FHWA and FRA could credit third‑party training funds to their program accounts. The Department may transfer tribal awards between operating administrations and the Office of Tribal Government Affairs.
Federal transit benefit payment rules
If enacted, the Department's Working Capital Fund could make advance payments to keep federal transit pass benefits flowing and later be fully reimbursed by customer agencies. The Fund must keep a reserve no larger than one month of benefits. Also, up to 10% of FY2026 collections of unused transit and van pool benefits may be used for contractual services, and FY2026 obligations from those receipts cannot exceed $1,000,000.
Extend whistleblower protections for contractors
If enacted, federal whistleblower protections in 41 U.S.C. §4712 would apply to any contract, subcontract, grant, subgrant, or personal services contract paid with funds from this Act or prior Acts. Coverage would apply even when the underlying agreement was executed before the funding.
No political signage requirement for grantees
If enacted, no funds from this Act could be used to force a recipient to display a sign with the President, Vice President, or Cabinet member's name as a condition of getting federal money.
Protect small community air service
If enacted, funds from this Act (and other Acts) could not be used to cancel or renegotiate an existing Essential Air Service contract before the normal rebid period unless the EAS community asks in writing. The rule applies only to existing contracts where the carrier is in compliance with contract terms.
Protect local control for HUD grants
If enacted, HUD could not use money from this Act to require specific changes to local zoning laws under the cited Affirmatively Furthering Fair Housing interim rule. The bill would also prohibit using funds to end a unit of local government’s status as a metropolitan city for section 106 grants. These rules protect local zoning decisions and metropolitan city grant status.
No FHA backing for eminent-domain refinances
If enacted, the FHA, GNMA, and HUD could not use funds made available by this Act to insure, securitize, or guarantee any mortgage or mortgage-backed security that refinances or replaces a mortgage that was subject to eminent domain condemnation or seizure by a State or local government. This change affects homeowners whose new mortgage replaces one taken by eminent domain.
Limit FAA second career funding
If enacted, the bill would prevent FY2026 FAA operations funds from being used to support new applicants to the FAA second career training program. Prospective new enrollees could not get program-funded training from those FAA operation funds during the year.
HUD administrative and grant rules
If enacted, HUD would get modest new internal flexibilities and procedural rules. The Secretary could move up to 10% or $5 million between covered offices with 5 business days' notice. HUD could pay program litigation fees from program office budgets and move up to $5 million to an Information Technology Fund (available until Sept. 30, 2028) with 10 business days' notice and limits on projects funded. HUD must ensure allotment holders are trained in funds control. The bill also requires Title II awards be competitive, allows HUD to post NOFOs online only for FY2026, and requires at least 60 days for public comment on rulemaking.
Pre-notice for DOT credit approvals
If enacted, the Department of Transportation could not provide credit assistance under sections 603 and 604 of title 23, U.S.C., unless the Secretary gives the listed congressional committees a written notice at least three days before approval. The notice must include the project sponsor, a description, the form of credit assistance (direct loan, loan guarantee, or line of credit), and the amount.
Sponsors & CoSponsors
Sponsor
Cindy Hyde-Smith
MS • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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