As we look forward to fiscal year 2026, we’re faced with some good, some bad, and some question marks.
In May, President Trump shared what’s known as the “skinny budget,” essentially the President’s recommended budget for the upcoming fiscal year. The proposal sent shockwaves through the housing community, calling for 43% cuts to rental assistance programs, including the Section 8 and Public Housing programs. It also called for shifting funding for rental assistance programs to states via state block grants.
Since then, we’ve seen the Transportation, Housing and Urban Development (THUD) Committees of the U.S. House of Representatives and the U.S. Senate committees overseeing HUD funding share their budget proposals.
On the House side, the budget holds funding for the Housing Assistance Payments (HAP) portion of the Section 8 voucher program flat, while cutting the Administrative Fee total by $796 million. Essentially, that leaves the same amount of funds for the subsidy the program provides tenants, but cuts funding for the administration of that subsidy.
On the Senate side, the news is better, with a $1.829 billion increase in HAP and a $135 million increase for administration. The Public Housing program Capital Fund would remain level, with $603 million less in its Operating Fund.
The three budget scenarios are various shades of bad news, though the Senate’s is the most favorable. You can see a comparison of the three proposals here.
While the House and Senate committees were refining their budget proposals, both entities passed the One Big Beautiful Bill, or the budget reconciliation bill. In it, the federal government expanded the Low-Income Housing Tax Credit (LIHTC) program permanently by 12% beginning next year, which is the primary financing tool used to develop affordable housing. This is really good news for housing development.
Now for the uncertain. We’re in a holding pattern until either a federal budget is passed or a Continuing Resolution (CR) is enacted. Even in the instance of a CR that maintains 2025 funding levels, we will lose vouchers from the Section 8 program. At a minimum, Tulsa would stand to lose between 600 – 720 vouchers in fiscal year 2026 if current funding remains in place. And when vouchers are lost, it is highly unlikely we can get them back.
While we await a budget for 2026, we’re leaning into the good, focusing on developing affordable and mixed-income housing to help meet our city’s need. With projects like The Hilltop and 36N, we’re focused on what we can control, and as always, focused on our mission of creating a better Tulsa.
Tulsa Housing Authority 