House THUD Subcommittee advances FY2026 transportation, housing bill over Democratic objections

The House Appropriations Subcommittee on Transportation, Housing and Urban Development favorably reported the fiscal 2026 transportation, housing and urban development (THUD) appropriations bill at a subcommittee markup, with members divided over substantial reductions to housing and transit funding.

The bill’s discretionary allocation is $89.9 billion, described by the subcommittee majority as a roughly 5% reduction from FY2025 and, when accounting for fewer housing receipts and member-designated projects, about $6 billion below FY2025 levels. The measure directs new spending priorities for the Department of Transportation (DOT) and the Department of Housing and Urban Development (HUD) while trimming or eliminating numerous programs, according to opening remarks from the subcommittee chair.

Why it matters: Democrats on the subcommittee said the cuts would reduce rental assistance, weaken fair-housing enforcement and undermine ongoing rail and transit projects; Republicans said the bill restores fiscal discipline while prioritizing transportation safety and core infrastructure needs.

Republican members highlighted increases and priorities for…