When Congress returns in January, the U.S. Senate will face a series of votes that will determine the future of federal housing programs Missourians rely on to stay housed. In late December, Senate leaders made progress in negotiations to prevent a February shutdown. The negotiations focused on an early January vote on a “minibus” bill that would include appropriations for Defense, Labor, Health and Human Services, Education, Commerce, Justice, Interior, Transportation, and Housing and Urban Development. The U.S. Department of Housing and Urban Development (HUD), like most other federal agencies, has not yet had a FY26 spending bill passed, and it’s through this funding that HUD supports key homelessness prevention programs like Permanent Supportive Housing, rental assistance, affordable housing construction and more.
Federal Appropriations Timeline
- July 3, 2025 – Congress passed the H.R. 1 spending bill that included substantial tax cuts for the wealthiest, as well as major cuts to SNAP and Medicaid. Because this was a budget reconciliation bill, it did not include FY26 appropriations.
- October 1, 2025 – Congress failed to pass FY26 appropriations before the start of the fiscal year, triggering a partial federal government shutdown.
- November 12, 2025 – Congress passed a Continuing Resolution, reopening the federal government at current spending levels through January 30, 2026.
- Early January 2026 – Senate is expected to vote on a “minibus” appropriations bill that includes funding for HUD.
- January 30, 2026 – The current Continuing Resolution expires.
What’s at Stake for Missouri?
Federal rental assistance programs are already a lifeline for thousands of Missourians. According to the Center on Budget and Policy Priorities, more than 93,000 low-income households in Missouri rely on federal rental assistance to afford modest housing, and at least 62% of those households have extremely low incomes, meaning incomes below 30% of the local median income. Under an earlier House FY26 HUD appropriations proposal, an estimated 2,900 Missouri families would have lost housing vouchers, affecting more than 6,500 individuals statewide. The upcoming vote on the “minibus” bill is a critical opportunity to prevent those harmful cuts and protect assistance that tens of thousands of Missouri families count on.
Update on Continuums of Care (CoC) Homelessness Prevention Funding
November 2025 ended with deeply concerning news for organizations providing homelessness prevention services. HUD announced then that FY26 funding for Continuums of Care would not be distributed as planned, and introduced a new application process that would delay funding until at least May 2026.
Nonprofit organizations and several states challenged HUD’s last minute policy switch in federal court, and as a result of that lawsuit, HUD rescinded its new application process. On December 23rd, Judge McElroy issued a preliminary injunction preventing HUD from implementing the new process. While this ruling was an important step, it does not fully protect CoC providers in Missouri or elsewhere from future delays. Congress must act now by including explicit language in the January “minibus” bill requiring HUD to immediately release CoC funding so organizations can continue serving people at risk of homelessness.
Key HUD Funding Priorities in FY 26
- Full funding for the Housing Choice Voucher Program (HCV, also known as Section 8)
- Full funding for the Emergency Housing Voucher Program (EHV)
- $15 million for the Eviction Protection Grant Program (EPGP); Missouri is one of 19 states to receive EPGP funding to provide eviction defense to qualifying families
- $5.7 billion for public housing operations
- $4.922 billion for HUD’s Homeless Assistance Grants program
- Language that requires HUD to immediately distribute Continuum of Care funding as originally planned
Take Action
Join the National Low Income Housing Coalition in contacting your Members of Congress and urging them to fully fund HUD programs in the FY26 appropriations bill. Click the button below to send a message to your Members of Congress.
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