Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations for FY2026

The House and the Senate Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Subcommittees are charged with providing annual appropriations for the U.S. Department of Transportation (DOT), the U.S. Department of Housing and Urban Development (HUD), and certain related agencies. On February 3, 2026, the Consolidated Appropriations Act, 2026 (P.L. 119-75) was signed into law, which included as Division D the Transportation, HUD, and Related Agencies Appropriations Act, 2026. It included the following: For DOT, $25.1 billion in new discretionary funding (-0.4% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the bill is $108.4 billion in FY2026 (+1.5% relative to FY2025 enacted). Additionally, the law includes transfers involving supplemental funding totaling $2.3 billion. For HUD, $77.3 billion in net new discretionary funding (+12.6% relative to FY2025 enacted, including emergency-designated funding for regular program operations). For the related agencies typically funded in the THUD bill, $425 million (-1.8% relative to FY2025 enacted). Prior to enactment of final full-year THUD appropriations, funding for THUD was maintained at FY2025 levels via a continuing resolution (Division A of P.L. 119-37), which was enacted following a government-wide funding lapse that lasted from October 1, 2025, through November 12, 2025. Before the start of the fiscal year, the House and Senate took various appropriations actions. On July 17, 2025, the House Appropriations Committee marked up its FY2026 THUD appropriations bill (H.R. 4552; H.Rept. 119-212), following subcommittee markup on July 14. The committee reported the bill on July 21. It included the following: For DOT, $21.8 billion in new discretionary funding (-13.7% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the THUD bill would have been $105.1 billion in FY2026 (-1.6% relative to FY2025 enacted). For HUD, $67.8 billion in net new discretionary funding (+11.6% relative to FY2025 enacted, including emergency-designated funding for regular program operations). For the related agencies typically funded in the THUD bill, $366 million (-15.5% relative to FY2025 enacted). Forgoing initial subcommittee markup, the Senate Appropriations Committee marked up and reported its FY2026 THUD appropriations bill (S. 2465; S.Rept. 119-47) on July 24, 2025. It included the following: For DOT, $26.5 billion in new discretionary funding (+5.1% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the THUD bill would have been $109.8 billion in FY2026 (+2.8% relative to FY2025 enacted). For HUD, $73.3 billion in net new discretionary funding (+20.7% relative to FY2025 enacted, including emergency-designated funding for regular program operations). For the related agencies typically funded in the THUD bill, $424 million (-2.1% relative to FY2025 enacted). The annual appropriations process generally begins with the release of the President’s budget, which is due in February. The second Trump Administration’s FY2026 budget release was delayed due to the presidential transition and other factors. A skinny budget was released in early May 2025, with more details—including Congressional Budget Justifications—released later. For the agencies that comprise the THUD budget, it proposed the following: For DOT, $26.7 billion in net new discretionary funding (+5.6% relative to FY2025 enacted). When paired with $83.3 billion in mandatory funding, total DOT funding in the THUD bill would be $109.9 billion in FY2026 (+3% relative to FY2025 enacted). For HUD, $36.6 billion in net new discretionary funding (-46.8% relative to FY2025 enacted, including emergency-designated funding for regular program operations). For the related agencies typically funded in the THUD bill, $293 million (-32.3% relative to FY2025 enacted).