Congress is running out of time. The Department of Housing and Urban Development could shut down at midnight on Friday, January 30, 2026. Six major funding bills remain stalled in the Senate, and experts now say there’s an 80% chance of a partial government shutdown affecting millions of Americans who rely on housing help.
The House passed the final six appropriations bills on January 21. But the package is stuck in the Senate over a fight about immigration enforcement and Department of Homeland Security funding. Senate Democrats have unified in opposition, and the clock is ticking.
HUD oversees critical programs including Section 8 vouchers, public housing, homeless assistance grants, and FHA loans. If Congress doesn’t pass the Transportation, Housing and Urban Development (THUD) bill by the deadline, many of these programs could face serious disruptions.
Rental assistance will continue, but only for a limited time. HUD has confirmed it has enough funding to cover Housing Assistance Payments through March 2026. That means tenants using Section 8 vouchers or living in public housing are protected from evictions or rent increases during a shutdown. You only need to pay your normal portion of the rent.
But after March, the situation becomes uncertain.
Homeless services could face delays. Organizations that receive Continuum of Care grants can keep operating. However, any new agreements or actions requiring HUD staff approval will be paused. HUD plans to operate with a skeleton staff during a shutdown, cutting staff levels by roughly 24% for the rest of the fiscal year.
FHA loans and multifamily housing deals will freeze. New applications for FHA-insured mortgages won’t be processed. Only projects that received “Firm Commitments” before the shutdown or were nearly closed may move forward. Developers and homebuyers should prepare for major delays.
Community Development Block Grants and HOME Investment Partnerships can still be accessed if funds were already obligated. Grantees can draw down money through automated systems, as long as those systems stay online.
Some programs are safe. SNAP benefits, Veterans’ Affairs programs, and the Low Income Home Energy Assistance Program (LIHEAP) were funded through September 30, 2026, in earlier legislation. They won’t be affected by the January 30 deadline.
Housing advocates are urging tenants to stay calm but stay informed. “Continue paying your share of the rent,” said legal aid workers at LawHelp.org. “If a landlord threatens eviction because of delayed subsidies, contact a legal services provider immediately.”
Housing authorities and property owners should review contracts expiring in early 2026 and consult HUD’s official contingency plan to understand which activities are considered essential during a lapse in funding.
The dispute over DHS funding has created a political standoff with serious consequences for vulnerable Americans. With less than 48 hours until the deadline, pressure is mounting on Senate leaders to reach a deal.
As of now, no agreement has been announced.
