This month’s HUD Insights breaks down the agency’s just-passed 2026 budget, a new housing affordability package in the House, and how the White House’s AI executive order may impact the multifamily industry. These are the three housing policy developments we’re watching in Washington, D.C.

• 1. Lawmakers Aim to Pass Full-Year HUD Budget by Jan. 30 Deadline
• 2. House to Consider New Affordability Package After ‘ROAD’ Removal
• 3. AI Executive Order Aims to Create Uniform Industry Standards

1. Lawmakers Aim to Pass Full-Year HUD Budget by Jan. 30 Deadline

The story: The House and Senate are negotiating a slate of appropriations bills ahead of a Jan. 30 deadline, one of which would provide the Department of Housing and Urban Development (HUD) with a full-year budget for 2026. HUD hasn’t had a full-year budget since 2024; the agency was funded in 2025 through a series of continuing resolutions extending 2024 funding levels.

• In initial budget proposals last year, the House suggested cutting $939 million from HUD’s budget while the Senate advised adding $3.3 billion. Lawmakers are working toward reconciling the two proposals.
• Both chambers are aiming to avoid the deepest cuts requested by the Trump administration, which called for nearly halving HUD’s funding.
• The House and Senate also have reaffirmed a commitment to affordable housing, rejecting a proposed two-year limit on rental assistance funds. (However, HUD reportedly is drafting a rule that potentially could have that effect.)

“Providing full-year funding for HUD would provide certainty for lenders and borrowers. Under a continuing resolution, the agency only receives partial funds at any time, and that can create delays with HAP payments and other programs. Ideally, Congress passes a HUD budget through Sept. 30, while avoiding the cuts proposed in the President’s budget.”
– Megan Booth, Vice President of Commercial Real Estate Finance Policy, Mortgage Bankers Association (MBA)

The follow-up: Although lawmakers have stated their goal to pass a full-year budget for HUD and other agencies, there’s a chance Congress instead passes another continuing resolution to fund the government if the House and Senate cannot agree on broader terms by the Jan. 30 deadline.

The bottom line: A defined, long-term budget for HUD would mean FHA multifamily borrowers can plan out their 2026 projects with more certainty. But we’re still in wait-and-see mode.

2. House to Consider New Affordability Package After ‘ROAD’ Removal

The story: Lawmakers launched a new effort to pass a comprehensive housing affordability bill after Congress declined to move the “ROAD” to Housing Act forward in December. The House Financial Services Committee advanced the bipartisan Housing for the 21st Century Act, which includes many “ROAD” provisions championed by the housing industry. According to an explainer from the Bipartisan Policy Center, the new measure would:

• Update statutory FHA multifamily loan limits, tying them more closely to construction costs.
• Direct HUD to develop guidelines and best practices for local zoning and land use policies.
• Streamline environmental review for federally supported housing activities and expand categorical exclusions under the National Environmental Policy Act (NEPA).
• Develop solutions to support middle-income housing production.
• Require federal financing agencies to align and coordinate lending processes.

“Passage of comprehensive legislation early [this] year … would show that Congress can respond to a top public concern and encourage state and local leaders to boost housing supply and improve affordability.”
– Dennis Shea, Executive Vice President, Bipartisan Policy Center, according to National Mortgage Professional

The follow-up: The Housing for the 21st Century Act now goes to the full House for consideration, but it has not yet been scheduled for a vote. The Senate plans to introduce a companion to the bill, and the two versions will have to be reconciled before final passage.

The bottom line: Lawmakers on both sides of the aisle clearly recognize the urgency around affordable housing legislation. While the process may take a while, political will is not an issue standing in the way.

3. AI Executive Order Aims to Create Uniform Industry Standards

The story: A White House executive order calls for the development of a legislative framework for the country’s first federal artificial intelligence policy. The creation of a uniform set of guidelines could produce more clarity for housing providers, who currently rely on a patchwork of state laws to determine how to apply AI tools to their operations safely and responsibly. The administration lays out its vision at AI.gov.

• The federal policy would supersede state laws and limit states’ ability to regulate AI, according to the EO, which also directs the Department of Justice to create a task force to challenge state laws deemed unconstitutional. That’s likely to lead to a flood of lawsuits, The National Law Review reports.
• The intention is to simplify a complicated landscape: The National Conference of State Legislatures reported in August 2025 that more than 1,000 bills targeting AI had been introduced year to date in state legislatures across the country.
• MBA supports the administration’s focus on a “clear, nationally consistent framework for emerging technologies,” saying it will encourage AI innovation in the mortgage industry.

“Technology does not stop at a state border. We believe strongly that a unified federal approach is necessary to avoid a confusing patchwork of state laws and regulations that would stifle innovation and raise compliance and borrower costs.”
– MBA President and CEO Bob Broeksmit

The follow-up: The executive order sets federal direction, but agencies like HUD would still need to translate that direction into implementation steps. Any broader, durable framework would ultimately depend on how those actions hold up and whether Congress codifies them. This process will take time.

The bottom line: A uniform federal framework could reshape how multifamily operators use AI tools for screening, leasing, pricing, etc., by setting clearer guardrails—and it could shift compliance to one standard playbook.