The threat of housing cuts is already having real-world implications, even as Congress pushes less severe proposals.
This week, the Senate Appropriations Committee approved the fiscal year 2026 spending plan for the Department of Housing and Urban Development and other agencies.
The bill forgoes the most extreme cuts proposed by President Donald Trump, declining to slash rental assistance funding or to defund the Community Development Block Grant and the HOME Investment Partnerships programs. The bill includes $37.4 billion for tenant-based Section 8 vouchers (up $1.3 billion compared to last year), $1.2 billion for HOME (around the same as fiscal year 2025) and $4.4 billion for CDBG (up from last year’s allocation of $3.3 billion).
The measure also bars HUD from closing or relocating its field or regional offices, and requires the agency to maintain at least one agency in each state.
Another amendment that caught my eye calls on the HUD secretary to conduct a report on the property insurance market, “with an emphasis on affordable housing properties that are rent-restricted or rent-assisted.” Insurance premiums are a big part of rent-stabilized owners’ struggles with rising costs.
Of course, a lot can happen between now and when a final bill is approved. The full House and Senate need to consider the spending plans and get on the same page (the House’s bill included a number of the cuts sought by Trump) to pass a spending plan before Oct. 1.
In the meantime, uncertainty over where some of these programs may land is scaring developers and lenders. The Wall Street Journal reported this week that some developers are pumping the brakes on projects due to potential cuts to rental assistance. Without knowing if they can rely on that rental income, developers can’t secure the financing necessary to move forward with affordable housing projects.
And now for some levity: For federal legislation hawks this is probably not news, but I feel obliged to pass along that the Senate Appropriations Committee repeatedly referred to the Transportation, Housing and Urban Development Appropriations Bill as “THUD.” What a gift.
What we’re thinking about: What other effects are you seeing from potential housing funding cuts? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Jamie Lee Curtis will in fact play Jessica Fletcher in a “Murder She Wrote” reboot movie. Curtis confirmed rumors that she will take over the iconic role while promoting another reboot movie, “Freakier Friday,” per Variety. I’ve been waiting for this news for nearly two years.
Elsewhere in New York…
— The Board of Elections is conducting a recount in a City Council Republican primary, according to Spectrum News. In Brooklyn’s 47th district, candidate George Sarantopoulos led by 14 votes against opponent Richie Barsamian, but 2 ballots from the initial count were from voters that have been dead for 10 years and another was cast under the name of a man who says he never voted. A spokesperson for the Board of Elections said they expect to certify the results of the election next week.
— Thousands of New Yorkers are at risk of losing food aid as a result of Trump’s new tax law, Gothamist reported. The law tightens work requirements and requires New York to cover 15% of the cost of the Supplemental Nutrition Assistance Program, or SNAP. With these changes, SNAP recipients — including older adults, parents of teens, gig workers and legal immigrants — will face new hurdles to keeping their benefits, with many expected to lose them entirely.
— Crazy rain is expected tonight, alongside extreme heat and high winds. Stay safe! – Quinn Waller
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Residential: The top residential deal recorded Friday was $29 million for a triplex at 601 Washington Street. The West Village condo condominium unit spans 7,500 square feet. Serhant’s Sara Gore and Scott Francis have the listing.
Commercial: The top commercial deal recorded was $243.5 million for 560 West 43rd Street. J.P. Morgan purchased the 44-story rental building from investment firm Barings. JLL brokered the deal for both sides.
New to the Market: The highest price for a residential property hitting the market was $21.5 million for a penthouse unit at 430 East 58th Street. The Sutton Tower condo is 4,600 square feet. The Corcoran Group’s Steve Gold, Alberto Galindo, Scott Hernandez and William McLarnon have the listing.
Breaking Ground: The largest new building application filed was for a proposed 74,533-square-foot, 13-story residential building at 28 Havens Place in Brooklyn. Panagis Georgopoulos of P. Georgopoulos Architect is the applicant of record.
— Joseph Jungermann
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