Updates

Understanding the Budget Process:

• The federal fiscal year begins on October 1.
• The President’s FY26 budget request pertains to the year starting October 2025.
• The government is currently operating under a Continuing Resolution (CR) for FY25, set to expire on September 30, 2025.
• Meanwhile, Congress is deliberating HR1, the so-called “One Big Beautiful Bill Act”, a comprehensive and separate budget reconciliation package that passed the House on May 22 and is now in the Senate.

Senate Version of “One Big Beautiful Bill Act”

• Byrd Rule enforcement: Last week, the Senate parliamentarian struck several major provisions from the “One Big Beautiful Bill” for violating reconciliation rules, meaning they can’t pass with a simple majority. These changes would increase the deficit implications of the legislation, which some Republicans want to avoid.

• Targeted cuts removed:
• Cost‑shifting of SNAP expenses to states
• Defunding of the Consumer Financial Protection Bureau
• Judicial oversight limits

• Medicaid-specific provisions scrapped:
• Caps on provider taxes
• Coverage restrictions for undocumented immigrants
• Broader cost-shifting measures to states

• Tight timeline: Senators are racing to rewrite or remove barred sections before the July 4 recess to keep the bill alive under reconciliation.

• GOP response: Leaders plan to fully comply with the Byrd Rule rather than seek an override, aiming to preserve a viable path to passage.

Big Picture on Housing

• While the Housing Credit provisions in the Senate’s version of the reconciliation bill (expanding the 9% credit and reducing the 50% private activity bond test to 25%) would be a long-sought win for affordable housing advocates, which advocates estimate could create one million new homes over the next decade (per Novogradac), those gains do not offset president’s drastic proposed 44% cut to HUD programs in the FY26 budget.

Take Action

“Hands Off Housing Summer of Advocacy” – Webinar on Wednesday, July 9, 2-3 pm

Join the Network, Housing Works and the National HIV/AIDS Housing Coalition to learn about the political state of play related to Federal housing programs, including Continuum of Care and HOPWA (Housing Opportunities for People with AIDS), which are both threatened with elimination. Hear from experts and advocates, who will provide a toolkit for a summer of advocacy. Make your voices heard! Register HERE.

National Alliance to End Homelessness: Contact your member of Congress, urging them to oppose HUD’s attempt to move the Continuum of Care funding cycle back to an annual calendar — undermining efforts to spend more time helping people and less time doing paperwork.

Share Status of CoC Contracts: If your CoC renewal contracts have been made available to you, please let the Network know how you responded by filling out this Google survey.

Share Your Story: HUD-Funded Supportive Housing in Action:

The Supportive Housing Network of New York is collecting stories that highlight the impact of federal supportive housing and rental assistance programs. Stories from tenants, staff, community members, local business owners, or landlords are welcome. Submit your story via this Google Form.

Shelterforce: How Trump’s HUD Budget Proposal Would Harm Homelessness Response, June 27.

Time: Why the Senate’s Byrd Rule Could Mean Trouble for Trump’s Big Beautiful Bill, June 26.