House Committee Debates $89B Transportation and Housing Funding Bill Amid Housing Crisis

The U.S. House Committee on Appropriations convened on July 19, 2025, to discuss the Full Committee Markup of the Fiscal Year 2026 Transportation, Housing and Urban Development (THUD) and Energy & Water Bills. The meeting highlighted significant budgetary decisions impacting transportation safety, housing assistance, and infrastructure funding.

The proposed bill allocates $89.9 billion, representing a 5% reduction from the previous fiscal year. This reduction is attributed to fewer housing receipts and aims to streamline spending while prioritizing critical missions at the Department of Transportation (DOT) and the Department of Housing and Urban Development (HUD). Key investments include $5 billion for Federal Aviation Administration (FAA) facilities and equipment, a nearly $2 billion increase from FY25, and $63.4 billion for highways and bridges through the Highway Trust Fund.

The bill also emphasizes safety improvements across various transportation sectors, including a commitment to train and hire 2,500 new air traffic controllers to address staffing shortages. However, the reallocation of funds from lower-priority programs has raised concerns about potential impacts on infrastructure investments.

While proponents argue that the bill responsibly addresses the nation’s transportation and housing needs, critics, including ranking member James Clyburn, expressed strong opposition. They highlighted cuts to essential housing programs, including a $5 billion reduction in HUD's rental assistance, which could lead to increased evictions and homelessness. Clyburn emphasized the dire need for housing support, particularly for vulnerable populations, and criticized the bill for failing to adequately address the housing crisis.

The debate also touched on broader implications of the proposed cuts, with several members warning that the reductions could exacerbate the cost of living crisis faced by many Americans. They argued that the bill undermines efforts to provide affordable housing and reliable transportation, essential for economic stability.

As the committee moves forward, the discussions reflect a contentious divide over fiscal responsibility and the prioritization of federal spending, with significant implications for communities across the nation. The outcome of this markup will shape the future of transportation and housing policy as Congress continues to navigate budgetary challenges.