TOP STORIES 

Congress faces deadline for funding HUD, other agencies

Although USDA and some other parts of the government received final FY26 appropriations in the November law that ended the government shutdown, other agencies including HUD did not. Those agencies’ funding will end on January 30 unless Congress enacts another continuing resolution or full-year measures. Appropriations committees in both the House and the Senate approved HUD bills in July, but neither bill has moved further. In all, nine of the standard 12 appropriations bills remain unresolved beyond the end of this month.

Judge puts Continuum of Care changes on hold

HUD faces two lawsuits related to the significant changes in its Notice of Funding Opportunity for the Continuum of Care program. Just before a December 8 court hearing covering both cases, HUD withdrew the contested version of the NOFO. After another hearing on December 19, the judge issued a preliminary injunction requiring HUD to process applications under the original NOFO (but not to make funding awards) while the cases continue. HUD has posted a revised NOFO with a notice saying it will not implement the new version until a court allows it to do so.

One-third of USDA Rural Development staff left in first half of 2025

An analysis by USDA’s Office of Inspector General shows that 1,745 USDA RD staff left the department for various reasons between January 1 and June 14, 2025, amounting to 36% of the agency’s staff. The data is also presented by state and by pay period, but does not indicate how many RD employees departed in each state or at what point in time. Attrition rates at other USDA agencies ranged from 7% to 67%.

RuralSTAT

According to recently released Labor Department data, rural consumers spent an average of $22,600 on housing in 2024. Source: HAC tabulations of the Bureau of Labor Statistics Consumer Expenditure Survey.

OPPORTUNITIES

VA offers new and renewal Supportive Services for Veteran Families grants

The Department of Veterans Affairs Supportive Services for Veteran Families program funds private nonprofits and consumer cooperatives to assist very low-income veteran families residing in or transitioning to permanent housing. SSVF provides case management and supportive services to prevent the imminent loss of a veteran’s home or identify a new, more suitable housing situation for the individual and his or her family; or to rapidly re-house veterans and their families who are homeless and might remain homeless without this assistance. Priorities this year include renewal of existing grants that were awarded to expand services to rural communities. Applications are due February 19.

Affordable Housing for Rural Veterans Initiative funding available from HAC

Local nonprofit housing development organizations can apply by January 19 for grants to meet or help meet the affordable housing needs of veterans with low incomes in rural places. Grants typically range up to $30,000 per organization and must support bricks-and-mortar projects that assist low-income, elderly, and/or disabled veterans with critical home repair or accessibility modifications, support homeless veterans, help veterans become homeowners, and/or secure affordable rental housing. HAC’s AHRV Initiative is funded through the generous support of The Home Depot Foundation. A recorded webinar provides an overview of the RFP. For more information, contact HAC staff, ahrv@ruralhome.org. No phone calls please.

Activate Rural Learning Lab competition opens

Teams of creative entrepreneurs, artists, community activators, elected leaders, and small business owners in rural Minnesota, Montana, North Dakota, and South Dakota are eligible for funding and technical assistance to cultivate creative third places in rural communities. The 2026-2028 Activate Rural Learning Lab, offered by the Department of Public Transformation, will support 10 building activation projects in communities with populations under 20,000. An informational webinar is scheduled for January 21.

Grants for Arts Projects application window is open

The National Endowment for the Arts’ Grants for Arts Program is now accepting applications for arts projects across many disciplines. Nonprofits, state and local governments, and federally recognized Tribes or Tribal communities are eligible if they have five years of arts programming and an operating budget of $20,000 or more. Applications are due February 12.

Funding offered for rural workforce programming

Education Design Lab is accepting applications for its Rural Workforce Collaborative design challenge, an initiative focused on helping rural communities in the Southeastern U.S. build more equitable workforce pathways. The program supports cross-sector collaboratives as they work together to design and test solutions aligned with local employer and worker needs. Selected groups will receive funding and participate in a multi-year, human-centered design process to strengthen regional talent pipelines. The challenge aims to foster innovation and long-term economic mobility in rural areas.

CAPITOL HILL

Senate approves bill with timelines for BIA actions on Tribal homeownership

The Senate unanimously approved the Tribal Trust Land Homeownership Act (S. 723) on December 11. The bill would set timelines for Bureau of Indian Affairs actions in the process of approving mortgages on trust land. It must now be considered by the House.

REGULATIONS AND FEDERAL AGENCIES

Government-wide environmental regulations removed

In February 2025 the Council on Environmental Quality issued an interim final rule rescinding the regulations that have directed other federal agencies in implementing environmental protection requirements under the National Environmental Policy Act. CEQ has now adopted that rule without changes and effective immediately. CEQ guidance for other agencies remains in effect.

2026-28 housing goals set for Fannie Mae and Freddie Mac

The Federal Housing Finance Agency established revised 2026-28 housing goals for Fannie Mae and Freddie Mac, reducing some of the goals related to housing for low-income and very low-income residents.

Continued CFPB funding ordered

In a lawsuit brought by an employees’ union and a number of other organizations, a judge has ruled against the administration’s reasons for refusing to request funding for the Consumer Financial Protection Bureau. Another case challenging the administration’s actions with respect to the CFPB was filed recently and is now also pending.

Section 184 Indian housing program compliance date delayed

Compliance with HUD’s final rule entitled “Strengthening the Section 184 Indian Housing Loan Guarantee Program,” previously scheduled for December 31, 2025, is now indefinitely delayed until HUD completes necessary updates to the handbook that will provide necessary guidance for implementing the final rule.

HOTMA compliance date extended

HUD has changed the date to January 1, 2027 for required compliance with the Housing Opportunity Through Modernization Act’s provisions on tenant income and assets. A Federal Register notice establishes this date for Community Planning and Development programs such as HOME and CDBG. Notice H 2025-07 applies to properties using HUD’s multifamily programs.

HUD announces members of Tribal Intergovernmental Advisory Committee

The committee includes both new and returning members. It supplements the Tribal consultation process and is intended to facilitate intergovernmental communication between HUD and Tribal leaders, to make recommendations regarding HUD regulations, and to advise in the development of HUD’s American Indian and Alaska Native housing priorities.

PUBLICATIONS AND MEDIA

Rural vacation area home prices jumped rapidly

A Harvard Joint Center for Housing Studies report entitled Rural Housing Shift: Vacation Area Home Prices Surge Post-Pandemic explores the rapid increase in home prices outside metro areas that occurred during the Covid pandemic and early post-pandemic period (2020-2023). Rural counties with significant shares of vacation and second homes experienced the largest home price increases, but others did see appreciation also.

HAC

HAC is hiring

HAC job listings and application links are available on our website.

• Housing Specialist | Community Builder
• Social Enterprise Manager

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

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