Hearings to examine proposed budget estimates and justification for fiscal year 2027 for Military Construction and Family Housing

Appropriations Bill MarkupsSenate Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies · May 14, 2026 · 119th Congress
The Senate Appropriations Subcommittee met to review the Department of Housing and Urban Development's fiscal year 2027 budget request, testifying witness HUD Secretary Scott Turner. Begins at ▶ 0:18:25
Transcript
Highlights

Title

FY2027 HUD budget request and housing affordability oversight

Purpose

The Senate Appropriations Subcommittee met to review the Department of Housing and Urban Development's fiscal year 2027 budget request, testifying witness HUD Secretary Scott Turner. Senators questioned the proposed elimination of the CDBG, HOME, and SHOP programs, delayed homelessness data reporting, and the administration's "Housing First" policy shift, while Turner defended the $73.5 billion request as more fiscally disciplined than prior years. Begins at▶ 0:18:25

Who spoke

• Sen. Cindy Hyde-Smith (R-MS), Chair▶ 0:18:25: Opened noting no topline budget agreement exists yet▶ 0:19:26, criticized elimination of the HOME and SHOP programs▶ 0:20:26▶ 0:21:11, and later asked how HUD could better promote mass timber construction with USDA▶ 0:52:25.

• Sen. Kirsten Gillibrand (D-NY), Ranking Member▶ 0:26:18: Said the proposed budget would reduce affordable housing nationwide▶ 0:27:08, criticized tariffs and immigration policy for raising construction costs▶ 0:28:38▶ 0:29:13, and later sharply pressed Turner over the year-late homelessness data report▶ 0:46:37 and unclear commitment to issuing tenant protection voucher guidance▶ 0:50:18.

• Secretary Scott Turner, HUD▶ 0:32:52: Said the budget ends the CDBG program's "blooming" welfare use citing DEI-tied activities in Chicago and Massachusetts▶ 0:33:45, argued the "Housing First" model has failed despite record funding and 20% higher homelessness since 2020▶ 0:34:13, and cited $30 million for the Melania Trump Foster Youth Initiative▶ 0:35:10 and a $5 billion improper-payment finding from the Biden era▶ 0:36:11.

• Sen. Susan Collins (R-ME)▶ 0:38:19: Described 400 fully-permitted affordable housing units stalled for lack of HUD waivers▶ 0:39:22 and pressed on product-based versus project-based waiver reform▶ 0:40:23; also raised environmental review delays blocking senior aging-in-place modifications like walk-in tubs▶ 0:44:06.

• Sen. Patty Murray (D-WA)▶ 0:56:46: Said HUD illegally limited local governments' use of homelessness grants until a federal judge intervened▶ 0:57:12, noted 170,000+ households remain unhoused nationwide▶ 0:57:44, and disputed Turner's account of the one-third HUD staff departures▶ 1:01:04.

• Sen. Shelley Moore Capito (R-WV)▶ 1:04:12: Asked what FHA multifamily financing changes could be made without new legislation▶ 1:04:45 and defended CDBG's rural use in West Virginia▶ 1:07:07.

• Sen. Brian Schatz (D-HI)▶ 1:09:51: Sought agreement to preserve the Pro Housing program apart from anti-DEI disputes▶ 1:10:51 and pushed for permanent CDBG disaster-recovery authorization, noting only $8 million of $185 million awarded has been spent▶ 1:12:57.

• Sen. John Hoeven (R-ND)▶ 1:16:02: Asked Turner to commit to a Grand Forks affordable housing project▶ 1:16:24 and to continuum of care grant renewals for quarters 3 and 4▶ 1:18:31.

• Sen. Chris Coons (D-DE) [0:56:54 correction—actually 1:20:54]: Noted continuum of care grants were released only after federal litigation▶ 1:21:16, cited a $28 million Wilmington senior housing project completed with HOME and CDBG funds▶ 1:23:35, and criticized $922 million in homeless-support cuts amid a $1 billion White House ballroom request▶ 1:26:39.

• Sen. Chris Van Hollen (D-MD)▶ 1:27:03: Cited a homebuilders' estimate that tariffs added over $10,000 to new home construction costs▶ 1:27:27, said mortgage rates rose from the low 6% to over 6.5% since the Iran conflict began, adding $30,000 to mortgage costs▶ 1:29:06, and challenged a 7% proposed cut to Section 202 and 811 senior/disabled housing▶ 1:32:07.

Key moments

• Turner said the FY2025 financial report uncovered $5 billion in improper payments under the Biden administration, including funds paid to roughly 30,000 deceased tenants▶ 0:36:11▶ 1:08:52.

• Gillibrand and Turner clashed repeatedly over why HUD's mandated annual homelessness data report is more than a year late, with Turner blaming a government shutdown and litigation and Gillibrand calling the explanation "so inaccurate, unhelpful"▶ 0:46:37▶ 0:48:32▶ 0:48:46.

• Murray calculated that redirecting roughly $1.5 trillion in proposed defense spending to housing could build 1.1 million affordable units, a "huge dent" in the 7 million units Turner himself says the country needs▶ 1:02:26▶ 1:02:54.

• Sen. Coons pressed Turner on why HUD only released continuum of care grants after being sued, and Turner acknowledged "we are going to follow the law" without disputing the litigation trigger▶ 1:21:16▶ 1:21:37.

• Sen. Van Hollen tied rising mortgage rates to the administration's actions in Iran, citing a roughly $30,000 increase in total mortgage cost since the conflict began; Turner did not dispute the figures directly, instead citing national security▶ 1:29:06▶ 1:29:30.

• Schatz noted HUD has awarded about $185 million in CDBG disaster recovery funds but only $8 million has been spent, which Turner called "not a good story" and attributed to a "pipeline problem, not a policy problem"▶ 1:12:57▶ 1:13:27.

• Collins said HUD's waiver process requires resubmitting identical product waivers (e.g., heat pumps, HVAC) for each project separately, causing months-long delays and threatening tax-credit financing [0:40:31, 1:14:07 correction—0:41:14].

• Turner and Coons disagreed over whether lack of affordable housing is the universal root cause of homelessness, with Turner citing his uncle's substance-abuse-driven homelessness as evidence of other primary factors▶ 1:25:39▶ 1:25:49.

• Murray said HUD limited a court-restricted grant condition tied to service providers' treatment of transgender people even after a federal court prohibited its enforcement▶ 0:59:35▶ 1:00:06.

• Coons said the administration's budget cuts $922 million from homeless support programs while the President requests $1 billion for a White House ballroom▶ 1:26:39.

Metadata

CommitteeSenate Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies
Chamber / CongressSenate · 119th Congress
DateMay 14, 2026
TypeOpen Hearing
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript229 caption blocks · 8,777 words · 1:33:17 runtime
EventCongress.gov 338400