Congress Passes H.R.1 – What Comes Next?
Jessilyn Averill
Above is an explainer describing the difference between Appropriations vs. Reconciliations in the federal budget process. Continue reading here. Graphic courtesy of National Low Income Housing Coalition.
On July 4, the President signed House Resolution 1 (H.R.1) into law, completing the months-long budget reconciliation process. Reconciliation is different than the typical process the federal government uses to manage its budget. That process is called Appropriations and is still taking place through negotiations of the Fiscal Year 2026 Federal Budget. A draft of the FY26 budget, also referred to as the “skinny” budget, was first released by the President in early May 2025. Unfortunately, that budget also includes deep and alarming cuts to programs and services our homeless system of care depends on.
While HUD housing and homelessness assistance programs were not targeted for cuts in H.R.1, the massive reconciliation bill slashes funding for Medicaid and SNAP (Supplemental Nutrition Assistance Program), two programs that play a crucial role in economic stability for people and families with low incomes. The provisions would also make it more difficult for people experiencing homelessness to access and maintain medical care, which increases the risk of severe illness and can prolong homelessness.
Below are a few excerpts of statements released by national organizations recognizing the direct impact the House resolution will have on their work.
National Network for Youth: Significant Cuts to SNAP, Medicaid, and Taxes Signed Into Law
Besides cuts to Medicaid and SNAP which will impact youth and young adults experiencing homelessness so, too, will eliminating the work reporting exemption for foster, homeless youth and limiting the eligibility requirements for Pell Grants and Student Loans.
CSH (formerly Corporation for Supportive Housing): The Supportive Housing Field Faces a Shifting Policy Landscape
Supportive housing is effective because it combines affordable homes with access to healthcare and services. When those services become harder to access, the foundation of supportive housing becomes less stable and its impact more difficult to sustain.
While this legislation includes significant new resources for affordable housing and facility development by expanding Low-Income Housing Tax Credits and preserving the New Market Tax Credit program, it makes it harder for states to fund critical housing-related services. The bill restricts the ability of states to pay for Medicaid and adds administrative and eligibility barriers to healthcare and nutrition programs, making it harder for people to access services that help them remain stably housed. States now face making difficult budget decisions to close gaps or cut enrollment and services to balance their budgets.
National Council of Nonprofits: New Tax Law Threatens Nonprofits’ Ability to Serve Communities, Warns National Council of Nonprofits
The tax bill will likely result in fewer resources for nonprofit organizations. As a result, these vital institutions may be forced to cut back on services or serve fewer people. This harm is compounded by other attempts to reduce or eliminate funding to nonprofit organizations through arbitrary and unlawful cuts to congressionally-approved spending and reckless federal funding freezes by the Trump administration.
Center on Budget and Policy Priorities: Republican Bill Will Raise Costs, Poverty, and Hunger, Take Health Coverage Away From Millions
Congressional Republicans and the President now own its impact. Unfortunately, it is their constituents who will pay the price for their poor leadership.
What Comes Next?
The President’s request for cuts in the FY26 Budget is just the first step in creating a new federal budget. Congress ultimately has the power to decide how much funding to provide HUD programs and services. Though the passing of H.R.1 lays out significant funding losses that many elected representatives voted for, there is still time to advocate for increased funding for HUD programs in FY26:
Use National Low Income Housing Coalition’s (NLIHC) Take Action page to contact members of Congress.
Use resources in NLIHC’s FY26 advocacy toolkit, Opposing Cuts to Federal Investments in Affordable Housing, to effectively push back against the President’s proposal on multiple platforms.
Join a national sign-on letter, endorsed by over 2,700 organizations from around the country, urging Congress to provide the highest possible funding in FY26 for HUD affordable housing, homelessness, and community development programs.
In addition to continuing to fund Housing Choice Vouchers (HCVs) and other rental assistance renewals, Congress needs to provide sufficient funding to renew nearly 60,000 Emergency Housing Vouchers (EHVs). These vouchers are specifically aimed at individuals and families at risk of or currently experiencing homelessness, as well as those escaping intimate partner violence or human trafficking. Without this additional funding, these vulnerable households may lose their assistance, which would increase their risk of falling back into homelessness.
Learn more about the EHVs and take action on voucher funding with the Reject Housing Cuts and EHV Funding Toolkit. Created in collaboration with the Center on Budget and Policy Priorities, National Alliance to End Homelessness, and National Housing Law Project, the toolkit is updated regularly with new resources and advocacy materials.