TOP STORIES 

FY26 funding outlook remains unclear

As October 1 – the beginning of fiscal year 2026 – approaches, it is not clear whether parts of the federal government will shut down. A continuing resolution that would last through November 21 has been introduced in the House. It would keep most housing programs at current funding levels, but it does incorporate an administration request giving HUD flexibility to use unobligated funds to make up shortfalls in tenant-based rental assistance.

Updated agency shutdown plans have not been posted. There is no new information to add to HAC’s web post from March summarizing what a shutdown could mean for rural housing. USDA’s January 2024 shutdown plans are still online, while HUD’s and Treasury’s plans have been removed and not replaced. OMB’s shutdown page is blank and its September 2023 FAQs remain online.

Income and poverty rate largely unchanged from 2023 to 2024, Census reports, and housing costs rose

The Census Bureau’s annual reports on income and poverty show there were few changes from 2023 to 2024. Median income did not change significantly for white or white non-Hispanic households from 2023 to 2024, but declined by 3.3 percentage points for Black households. Income for the wealthiest 10% of households increased 4.2% while it did not change for lower-earning groups. The official poverty rate fell 0.4 percentage points to 10.6% in 2024. The Supplemental Poverty Measure rate (which takes account of assistance provided to lower-income families as well as other variables not covered in the official poverty rate) was 12.9% in 2024, not statistically different from 2023’s rate. Nationwide, the SPM was 2.9 percentage points higher than the official poverty rate (13.1% SPM compared to 10.2% official), but outside metro areas the official poverty rate was higher (12.1% SPM compared to 13.7% official).

Separately, the Census Bureau released new data showing that median monthly housing costs for U.S. homeowners with a mortgage increased to $2,035 in 2024 from $1,960 (inflation-adjusted) in 2023. For renters, the median cost of rent plus utilities rose to $1,487 in 2024 from $1,448 in 2023 (adjusted for inflation).

Housing and financing bills not yet included in must-pass legislation

The ROAD to Housing Act and a package of provisions related to Community Development Financial Institutions have not yet been, but could still be, added to the Senate’s National Defense Authorization Act, which so far has not been considered on the Senate floor. The House passed its version of the NDAA on September 10 without housing-related amendments.

FEMA staff cuts and funding examined

The Government Accountability Office, an independent agency that works for Congress, recently issued two reports on the Federal Emergency Management Agency and says it is preparing more.

Disaster Assistance High-Risk Series: Federal Response Workforce Readiness, published September 2, notes that efforts are underway to review the federal role in disaster response but FEMA’s responsibilities have not yet changed. GAO reviewed 2024 and 2025 limitations on the agency’s workforce capacity and expressed concerns about FEMA’s ability to meet demands. GAO says that later this fall it will publish a second report looking closely at state and local disaster capabilities.

A September 15 GAO decision examines FEMA’s compliance with the Impoundment Control Act of 1974, which limits the circumstances under which the administration can withhold funds appropriated by Congress. GAO concludes that FEMA “has violated the ICA by improperly withholding or delaying the obligation or expenditure of budget authority” appropriated for FY25 to the Emergency Food and Shelter Program and the Shelter and Services Program. It found no violations for several other FEMA programs. It intends to issue other decisions addressing amounts appropriated in prior fiscal years, as well as amounts appropriated and set aside for the Building Resilient Infrastructure and Communities program.

September 15 to October 15 is National Hispanic Heritage Month

Marking the occasion, the Library of Congress, National Park Service, Smithsonian Institution, and others are “paying tribute to the generations of Hispanic Americans who have positively influenced and enriched our nation and society.”

RuralSTAT

Median income in the U.S. was estimated at $83,730 in 2024, not statistically different from the 2023 estimate of $82,690. Outside metropolitan areas the estimated median income was $63,750 in 2024, also not a statistically significant change from $64,140 in 2023. Source: Census Bureau, Income in the United States: 2024.

OPPORTUNITIES

Funds for Tribal housing available

Federally recognized Tribes and Tribally Designated Housing Entities are eligible for the Indian Housing Block Grant competitive program to increase housing opportunities for low-income Tribal communities. Apply by January 15, 2026. Tribes and Tribal organizations may apply for the Community Development Block Grant Program for Indian Tribes and Alaska Native Villages by November 24. These grants can be used for housing, community facilities, or economic development benefiting low- and moderate-income people. ICDBG-Imminent Threat grants, which have no application deadline, are to eliminate or lessen problems that pose an imminent threat to public health or safety of Tribal residents.

Grants offered for projects that foster local connections

The Hometown Grants program provides up to $50,000 for shovel-ready projects in towns with populations under 50,000. Offered by T-Mobile and administered with assistance from Main Street America, the program helps fund projects that foster local connections, like technology upgrades, outdoor spaces, the arts, and community centers. Elected officials, town managers/employees, Tribal leaders, and nonprofit community leaders can apply. Awards are made quarterly; deadlines are on the last days of March, June, September, and December.

CAPITOL HILL

Subcommittee hears testimony on USDA Rural Development

On September 18 the House Agriculture Committee’s Subcommittee on Commodity Markets, Digital Assets, and Rural Development held a hearing on USDA’s Rural Development: Delivering Vital Programs and Services to Rural America. Witness testimony focused on the essential roles played by RD’s community facilities and business programs, as well as the critical need for RD’s field offices. RD’s housing programs do not fall under the Agriculture Committee’s jurisdiction, but their importance was mentioned at the hearing.

REGULATIONS AND FEDERAL AGENCIES

USDA issues guidance on use of disaster monies

A September 4 memo from Rural Housing Service Administrator George Kelly provides instructions to field staff on the use of Disaster Assistance Funds through the Section 533 Housing Preservation Grant program, the Section 502 direct loan program, and the Rural Disaster Home Repair Grant program. Funds must be used for recovery from specific disasters, as detailed in the notice.

Comment period extended for Fair Market Rents

HUD has changed the deadline for comments on its FY26 Fair Market Rents to October 1 rather than September 22.

Suit filed over Continuum of Care Builds program

The National Alliance to End Homelessness and Women’s Development Corporation filed a lawsuit on September 11 regarding the Continuum of Care Builds program, which supports new permanent supportive housing. Funds were appropriated in 2022 and will expire if not obligated by September 30, 2025. The lawsuit charges that HUD’s third notice of funding opportunity for the program illegally imposed criteria related to ideology and created a last-minute application process even though HUD had issued two previous NOFOs for the same funds. On September 12, a federal judge issued a temporary restraining order prohibiting HUD from making awards under the September 5 NOFO and suspending the September 30 expiration date.

Mass firing of probationary employees was unlawful, court says

Issuing the most recent decision in American Federation of Government Employees v. U.S. Office of Personnel Management, a case that has traveled to the Supreme Court and back, a federal judge ruled that the administration illegally fired over 25,000 probationary federal employees early in 2025. Judge William Alsup determined he could not order agencies to rehire people because the Supreme Court held that they could be fired while the litigation proceeds. The decision applies to USDA and some other agencies but not to all the agencies involved in the suit. The government has filed notice that it will appeal the ruling.

HUD asks how survey data is used

HUD is “evaluating current needs for data from” the Rental Housing Finance Survey and the Survey of Market Absorption of New Multifamily Units. It requests information from the public on uses of the data and other comments or concerns about the two surveys. Comments are due November 10.

EVENTS

State and local housing solutions webinar planned

The New Housing Leadership: Unlocking State and Local Solutions to America’s Housing Crisis will be presented on October 1 by the National Housing Trust. The session is intended to provide new messaging strategies surrounding the role of local organizations in housing, lessons from unlikely allies and partnerships, and concrete pathways for local housing leadership.

Selection of new Opportunity Zones to be covered in webinar

On September 23, the Economic Innovation Group will offer a webinar titled OZs 2.0: What State and Local Leaders Need to Know. The session is intended to provide state and local policymakers and their staff with practical guidance on the reconciliation bill’s changes to the Opportunity Zones program, including state designations of a new round of OZs in 2026.

Bank regulators to hear statements on regulations

The three federal agencies that oversee banks and thrifts will hold a public outreach meeting on October 30 in Kansas City and online. The session is part of a periodic review to identify outdated or unneeded regulations. Members of the public can register to present oral comments. Additional sessions will be announced in the future.

PUBLICATIONS AND MEDIA

Priorities for Fannie Mae and Freddie Mac released

The Underserved Mortgage Markets Coalition, a group of 40 organizations including HAC, convened by the National Association of Affordable Housing Lenders, has released its guiding priorities for Fannie Mae and Freddie Mac. These imperatives ask Fannie Mae and Freddie Mac to maintain and expand nationwide access to affordable, sustainable mortgages and rental housing, and to serve rural places fairly. UMMC has also relaunched its website at underservedmortgagemarkets.org, which includes comprehensive resources for policymakers and the public about the critical role Fannie Mae and Freddie Mac play in providing access to long-term affordable mortgage credit throughout the country.

New toolkit aims to help develop citizen advisory groups after disasters

The Hispanic Federation and the National Low-Income Housing Coalition published a new toolkit highlighting lessons learned by the Citizen Advisory Committee carrying out the Community Development Block Grants-Disaster Recovery program in Puerto Rico. HUD now recommends all disaster-stricken jurisdictions create such advisory groups. From understanding the program and its funding flexibility to the creation of an operational guide in English and Spanish, this toolkit seeks to build on the success of local CACs.

Report focuses on rural place-based economic development

A new publication from the Washington Center for Equitable Growth, A Place-Based Economic Development Strategy to Foster Rural U.S. Prosperity, highlights the importance of centering rural racial diversity, cross-sector economies, and innovation when developing investment and policy strategies.

Local funding adds housing in rural Ohio

Rural Williams County, Ohio has a considerable manufacturing base and a substantial housing shortage. This Rural Ohio County is Building its Own Way Out of a Housing Shortage, an article from the Ohio Newsroom, describes how a local public-private partnership, Williams County Port Authority, has raised funds from the county and local businesses to develop market-rate workforce housing. It has now built and sold 16 single-family homes and is working on a duplex and a senior living community.

HAC

HAC is hiring

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

• External Affairs Specialist
• Social Enterprise Manager
• Chief Financial Officer

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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