# 2026-03002: HUD Boosts Funding Limits for Low-Income Job Opportunities

2026-03002, Section 3 Project Threshold Updates for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses, is a Federal Register rule from Housing and Urban Development Department published 2026-02-13, effective 2026-03-16 (as of 2026-06-11).

- Canonical: https://policyrisk.com/federal-register/2026-03002
- As of: 2026-06-11
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2026-03002
- Title: Section 3 Project Threshold Updates for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses
- Type: Rule
- Agencies: Housing and Urban Development Department
- Citation: 91 FR 6752
- Published: 2026-02-13
- Effective: 2026-03-16
- Comments close: not stated
- Significant: no
- Touches household money: no
- Regulation identifier numbers: none
- Last updated: 2026-06-11

## In one line

HUD Boosts Funding Limits for Low-Income Job Opportunities

## Summary

Starting March 16, 2026, HUD is updating the money limits for projects that help low-income people and businesses get jobs and contracts. These new thresholds reflect rising construction costs and make sure more opportunities go to those who need them most. If you work in housing or community development, these changes could affect your projects and funding.

## Abstract

The Section 3 rule "Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses" published in the Federal Register on September 29, 2020, includes a requirement that the HUD Secretary update Section 3 project thresholds "not less than once every 5 years based on a national construction cost inflation factor through Federal Register notice not subject to public comment." This notice serves as an update of the 2020 version of the final rule, discusses the establishment of a national construction cost inflation factor for Section 3 projects, and establishes new Section 3 project thresholds.

## Effects PRIA read

- Section 3 Thresholds Raised to $300K / $150K: benefit, medium. Starting March 16, 2026, HUD raises the Section 3 project funding thresholds. Projects that receive HUD housing and community development assistance must now exceed $300,000 to be a Section 3 project (rounded from about $299,200), and projects receiving Lead Hazard Control and Healthy Homes assista…
- Public Housing Assistance Still Always Covered: mixed, low. This notice does not apply to public housing financial assistance. Public housing has no dollar threshold and any amount of public housing financial assistance will continue to trigger Section 3 compliance requirements.
- Thresholds Tied to Construction Inflation (49.6%): benefit, low. HUD will update Section 3 project thresholds at least once every 5 years using a national construction cost inflation factor. HUD calculated that construction costs rose about 49.6% from 2017 to 2023 using Bureau of Labor Statistics data, and used that factor to update the thresholds.

## Related documents

- [2026-16228](https://policyrisk.com/federal-register/2026-16228): HUD's Implementation of the Fair Housing Act's Disparate Impact Standard; Amendments to HUD's Title VI Regulations, 2026-08-10
- [2026-13939](https://policyrisk.com/federal-register/2026-13939): Rescission of Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Feder…, 2026-07-10
- [2026-08406](https://policyrisk.com/federal-register/2026-08406): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-30
- [2026-08339](https://policyrisk.com/federal-register/2026-08339): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-29
- [2026-08244](https://policyrisk.com/federal-register/2026-08244): Equal Access to Housing in HUD Programs Revisions, 2026-04-28
- [2026-06926](https://policyrisk.com/federal-register/2026-06926): HOME Investment Partnerships Program-Maximum Per-Unit Subsidy Limit Methodology and Amount; Notice for Comment, 2026-04-10

## Sources
- [2026-03002 on federalregister.gov](https://www.federalregister.gov/documents/2026/02/13/2026-03002/section-3-project-threshold-updates-for-creating-economic-opportunities-for-low--and-very-low-income)
- [2026-03002 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-02-13/pdf/2026-03002.pdf)

## Related
- [Previous: 2026-02982, North Dakota Regulatory Program](https://policyrisk.com/federal-register/2026-02982)
- [Next: C1-2026-00147, Hazard Communication Standard; Corrections](https://policyrisk.com/federal-register/C1-2026-00147)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2026-03002 (as of 2026-06-11).