The FY26 House Appropriations Bill for Indian Housing Programs offers an unexpected but welcome development: funding levels have remained largely intact, with only a $1.3 million reduction from FY25
Given prior projections of up to a 30% cut, this signals continued, though cautious, support for Indian Housing from federal appropriators.
Here’s the Breakdown
Indian Housing Block Grant – Formula Funding: $1.11 billion
This core funding source provides Tribes with critical dollars for affordable housing activities, from new construction to rehabilitation and operations of existing housing stock. The consistent funding level allows Tribal housing authorities to continue implementing multi-year housing plans without immediate disruption.
Indian Housing Block Grant – Competitive: $150 million
This competitive pot allows Tribes with strong plans and demonstrated need to receive additional funds to address overcrowding, aging infrastructure, and housing shortages, especially critical for growing populations and land base expansions.
Indian Community Development Block Grant (ICDBG): $75 million
Includes $70 million for single-purpose grants and up to $5 million for imminent threat grants. ICDBG funds are often used to support water, sewer, and housing rehabilitation projects, allowing communities to build livable, resilient infrastructure.
Tribal HUD-VASH: Up to $10 million for renewal grants
These funds support housing assistance for homeless or at-risk Native Veterans, combining HUD rental assistance with VA case management services, an essential program for those who served.
Section 184 Loan Guarantee: $1.7 million in budget authority, $1.8 billion loan limitation
With a modest $200,000 increase from FY25, this program supports Native families in accessing homeownership, while giving Tribes the tools to promote mortgage lending on trust land. The $400,000 allocation for administrative and contract expenses helps ensure continued technical support and regulatory compliance.
Section 184A Loan Guarantee (Native Hawaiian): $28 million loan limitation
Though no budget authority was included, the negative credit subsidy allows this program to continue operating without additional appropriated funds.
Title VI Loan Guarantee: $1 million in budget authority, $50 million loan limitation
Title VI remains a key tool for leveraging IHBG funds for larger housing and infrastructure projects.
Training and Technical Assistance: $7 million total
With $2 million reserved for the National American Indian Housing Council (NAIHC), these funds support essential capacity-building and workforce development in Tribal housing organizations.
PIH Salaries and Expenses (ONAP Portion):
While the overall budget for salaries and expenses saw a 17.4% reduction, ONAP will still receive a share to continue oversight and assistance functions.
Why This Moment Matters
While the House bill is good news in the short term, it exists against a backdrop of deepening uncertainty around the future of federal funding. Across Indian Country, there is a growing recognition that economic independence must become a central pillar of long-term Tribal Strategy. The pandemic, ARPA wind-downs, and shifting political climates have underscored how fragile reliance on federal sources can be.
That’s why housing is no longer just about homes, it’s about capability and capacity.
A strong housing strategy empowers Tribes to:
- Create local construction jobs and develop internal workforces
- Support healthcare delivery through stable and safe living environments
- Anchor infrastructure projects like water, sewer, and broadband
- Attract and retain Tribal members and professionals by improving livability
- Lay the foundation for revenue-generating housing models (e.g., rentals, fee-for-service)
Housing impacts every sector of a Tribal Nation’s development. It shapes how a community grows, how it cares for its people, and how it prepares for the future.
To take full advantage of these opportunities, Tribes must build the strategic frameworks and operational infrastructure to go beyond compliance and toward innovation.
How Blue Stone Can Help
At Blue Stone Strategy Partners, we help Tribes take a proactive approach to housing and economic development. Our team works with Tribal leaders to:
- Develop strategic housing and land use plans aligned with economic independence
Assess your current capabilities and capacity in housing and infrastructure - Identify and pursue competitive federal grants and financing tools
- Build internal systems and policies that strengthen Tribal governance and oversight
- Implement housing models that support long-term sustainability
As Indian Country turns inward to reclaim economic self-determination, housing will be a cornerstone of that transformation. It’s not just about keeping pace, it’s about building a future where Tribal Nations thrive on their own terms.