Lawmakers Reach Deal to End 40-Day Government Shutdown

After weeks of recriminations, federal employee layoffs, and RIFs (reductions in force) and behind-the-scenes negotiations, lawmakers appear to have reached an agreement to end the now 40-day government shutdown. The deal paves the way for federal agencies to resume operations, for SNAP and food assistance to be restored, and for furloughed federal employees to be back-paid.  

The new deal includes a vote on a minibus for three federal agencies (VA-military construction, the Department of Agriculture, the FDA, and Government Operations) and a continuing resolution (CR) that will keep the government running, reportedly through January 29th, while Congress works on budgets for the remaining federal agencies, including HUD.  

With the passage of the funding bill, federal employees can return to work and will receive back pay for the time they were furloughed. Depending on how quickly the administration implements the deal's provisions, we expect HUD employees on the payroll before the shutdown to return to work as well, which we hope translates into contracts being closed and processes returning as close to normal as possible. 

We are also assuming that the announced elimination of CDFI staff and funding will be rescinded, as this clearly falls within the agreement's framework.  A group of over 100 Republican legislators sent a letter to the administration detailing their concerns with the elimination of the office and an assumption that the directive would be rescinded.  

We also look forward to the House returning to work and with it, progress on the HOME Reform Bill authored by Reps. Flood (D-NE) and Cleaver (D-MO). The Financial Services Committee may take up other housing provisions, as we work toward a conference with the Senate and the ROAD to Housing Act, which they passed a few weeks ago.  Passage of a big housing bill by Congress, perhaps late this year or early in 2026, will continue a string of successes for the affordable housing industry. 

We will update you as the budget talks continue, and thank you for your continued support and advocacy.