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. 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, with more details—including Congressional Budget Justifications—released later. For the agencies that comprise the THUD budget, it proposes 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). On July 17, the House Appropriations Committee marked up and ordered reported its FY2026 THUD appropriations bill (H.R. 4552; H.Rept. 119-212), following subcommittee markup on July 14. It includes: 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 be $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 ordered reported its FY2026 THUD appropriations bill (S. 2465; S.Rept. 119-47) on July 24. It includes 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 be $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). DOT, HUD, and the related agencies that would typically be funded for FY2026 by the annual THUD appropriations act are currently being funded under a continuing resolution (Div. A of P.L. 119-37) that largely extends FY2025 funding levels through January 30, 2026. Enactment of this law ended a government-wide funding lapse that lasted from October 1, 2025, through November 12, 2025.