We are about halfway through the 2026 Illinois General Assembly session, and Housing Action has made some positive progress in advancing key priorities from our 2026 Policy Agenda. We will keep advocating with our members and allies to move our full legislative agenda forward before the session ends on May 31.

Work on the state budget always increases during the second half of the legislative session. We are focused on reversing proposed cuts to homeless services into budget increases and advocating for progressive revenue increases needed to ensure that Illinois can meet basic human needs, especially as federal funding remains under attack.

At the same time, at the federal level, we are actively engaging with our Illinois Congressional delegation and coordinating with our national partners to protect federal funding, oppose harmful policy proposals, and pursue opportunities for positive policy change.

Thank you to everyone who has supported Housing Action Illinois’ advocacy initiatives so far this year. 

State Advocacy Update

Bills Passed Out of Committee

We’re pleased to share that three bills we are helping lead advocacy on have passed committee: 

Preventing and ending homelessness:

• HB 1429: Stop Criminalizing Homelessness (Chief Sponsor: Representative Kevin Olickal) protects people from being fined or penalized for basic survival activities, such as trying to stay warm, resting, and eating. View our fact sheet.

Protecting Tenants:

• HB 4377: Protect Tenants in Public Housing and Other Federally Subsidized Rental Housing from Time Limits and Work Requirements (Chief Sponsor: Representative Maurice West) preempts a Trump administration proposal to allow Public Housing Authorities (PHAs) and owners of project-based Section 8 housing to establish work requirements and time limits. View our fact sheet.
• HB 5234: “Trailer Bill” Changing the Effective Date of HB 3564 to Ensure Passage of the “End Rental Junk Fees: Rental Affordability and Fee Transparency Act” (Chief Sponsor: Representative Nabeela Syed) addresses the mounting move-in fees and non-optional junk fees that renters are facing. View our HB 3564 fact sheet (HB 3564 awaits a final concurrence vote in the House).

Additional bills we support that have also passed committee:

• HB 3526: Support Manufactured Home Residents by Limiting Rent Increases (Chief Sponsor: Representative Abdelnasser Rashid) – Fact Sheet
• HB 5198: Strengthen the Affordable Housing Planning and Appeal Act (Chief Sponsor: Representative Tracy Katz Muhl) – Fact Sheet
• HB 5424: Renew and Amend Comprehensive Housing Planning Act (Chief Sponsor: Representative Curtis Tarver) – More information
• HB 5394: End Credit Score Discrimination Against Voucher Holders (Chief Sponsor: Representative Kevin Olickal) – Fact Sheet

Bills We Are Working to Advance

Often, bills don’t move until later in the General Assembly session. We are continuing to push for movement on the below.

Preventing homeowner displacement:

• SB 3940: Tyler v. Hennepin Reform that Works for Property Owners, Taxing Districts and Taxpayers (Chief Sponsor: Senator Celina Villanueva). This bill is intended to help homeowners pay delinquent property taxes and maintain equity if they lose their homes due to unpaid property taxes. This would also bring Illinois state law into compliance with the U.S. Supreme Court decision in Tyler v. Hennepin. View our fact sheet.

Read recent press coverage from Injustice Watch and the Investigative Project on Race and Equity: Steps Illinois lawmakers could take to reform the state’s tax sale laws

Protecting tenants:

• SB 2264: Regulation of the use of so-called “crime free housing and nuisance ordinances” (Chief Sponsor: Senator Karina Villa). This bill regulates the use of so-called “crime-free housing and nuisance ordinances.” These laws can force landlords to evict tenants because of 911 calls or other alleged “nuisance” activity. This punishes renters for calling for help and puts survivors of domestic violence, as well as people with disabilities, at risk.  View our fact sheet.

We also continue to urge passage of Governor Pritzker’s BUILD package to increase the supply of “missing middle” housing and promote greater affordability and choice in the housing market.

We are also supportive of SB 3169, sponsored by Senator Graciela Guzmán, being advocated for by a coalition of Community Land Trusts to create more resources and tools for CLTs to create permanently affordable homes for owners. (Fact Sheet).

State Budget Focus During Final Weeks of Session

At the start of 2026, we anticipated advocating for modest budget increases for programs to prevent and end homelessness, given state budget challenges on the horizon such as loss of federal health care and food assistance funding.

However, new federal policy threats—particularly harmful and counterproductive policy proposals regarding the Continuum of Care Program—have made significant increased state investment in Permanent Supportive Housing even more urgent.

This made it all the more dismaying to see the cut the HOME Illinois Program (a $10 million reduction, down to a total of $253.7 million) and a supportive housing line item (a $1.4 million reduction to the Supportive MI Housing line item, down to total of $21,313,800) in Governor Pritzker’s FY 2027 budget proposal.

During the rest of the General Assembly session, we will continue advocating for funding increases instead of cuts. See the fact sheet on on appropriations legislation. Our Chief Sponsors are Seantor Adriane Johnson (SB 2969) and Represenative Lindsey LaPointe (HB 4568).

We will also work with partners such as the Illinois Revenue Alliance to make sure the final budget package includes progressive revenue increases, including a “Billionaire Wealth Tax” on asset appreciation, ensuring extreme wealth growth is taxed just like wages and raising an estimated $916 million in FY27.

The General Assembly will pass a budget by the end of may, and we are still speaking with legislators the critical need to increase overall funding each year, particularly for emergency shelters, which serve people with absolutely no place else to go.

Federal Advocacy Update

We continue to work closely with national partners and Illinois’ Congressional delegation to oppose budget cuts and policies that weaken the federal role in meeting housing needs. 

Federal Budget Rejects Deep Cuts

Our collective advocacy resulted in a final FY26 federal budget that largely rejects the massive budget cuts proposed by the Trump administration. The FY26 budget bill also contained provisions directing HUD to renew FY25 Continuum of Care contracts for homeless service providers, an important outcome, although implementation has been slow. Find out more from the National Low Income Housing Coalition.

Looking ahead, President Trump will release a FY27 budget proposal soon, and we are prepared to oppose new threats to critical policies and programs.

Collective Action in Response to Policy Threats

We are actively opposing multiple proposed rules from HUD, including:

• Weakening the disparate impact standard for fair housing, a key issue in our work to continue addressing housing discrimination 
• Threatening the legal rights of mixed immigration status households to federal housing assistance
• Reducing eviction protections for HUD-assisted households
• Allowing counterproductive time limits and work requirements for public housing residents and other tenants in federally subsidized housing 

Housing Action submitted comments on the disparate impact proposal through a letter we drafted that was signed by 53 organizations. We also worked with Representative Nikki Budiuzski who with 12 of her fellow members from Illinois sent a letter to HUD. The  proposed rule would rescind the existing regulation that should be better used to address facially neutral practices—such as redlining, exclusionary zoning, and discriminatory infrastructure and siting decisions—that produce lasting and measurable disparities.

Additional harmful proposals, particularly regarding allowable uses of funding, could affect  nonprofits implementing the Continuum of Care Program, fair housing programs, and the Housing Counseling Program. Some of these policy changes remain the subject of litigation. Other proposed changes could impact the entire nonprofit sector, such as a proposal requiring applicants or recipients of federal grants to sign vague and overly broad certifications under the threat of civil and criminal penalties. 

The requirements are intended to align with an executive order from President Trump and guidance from the U.S. Department of Justice. Together, these policies would ban support for diversity, equity, inclusion, and accessibility (DEIA) programs and could require organizations that receive federal funding to take on roles related to immigration enforcement and anti-terrorism compliance. More than 1,300 organizations, including Housing Action Illinois, have signed a letter from the National Council of Nonprofits opposing this change.

As we finalized this update, we are glad to report that there have been two positive court decisions related to Continuum of Care (CoC) program: 

• On March 31, the U.S. District Court in Rhode Island ruled HUDs implementation of the CoC Builds NOFO was in violation of federal law.
• On April 1, the First Circuit Appeal Court rejected HUD’s request to overturn a lower court’s temporary injunction against HUD’s planned changes to the CoC Program through the FY25 funding competition.

In the coming days, we will circulate a sign-on letter to oppose HUD’s proposed rule on barring mixed immigration status households from federally subsidized housing, an unnecessary proposal that is contrary to statutory language and against our values. It will also cost Illinois and the nation millions of dollars in costs due to increased homelessness and administrative burdens.

Building Support in Congress

Whatever good work we have been able to accomplish at the federal level is made possible by strong relationships with members of our Illinois Congressional delegation, including with Senator Dick Durbin and Representative Mike Quigley, both members of the subcommittees that determine and have oversight of the HUD budget.

Recent movement on the “21st Century ROAD to Housing Act” demonstrates bipartisan support and momentum for affordable housing solutions. We urge the House to take up the bill and pass it as soon as possible.

Speak Up With Us

There are many ways to support our work—from contacting your elected officials to filling out a witness slip for a committee hearing at the State Capitol to endorsing one of our campaigns. Visit our recently launched Action Center to get involved.  

If you have any questions or want to join specific campaign efforts, please contact our Housing Policy Organizer Foluke Akanni.

Support our work by donating or becoming a member today »

Deadline: All comments must be submitted by April 21, 2026.

The Department of Housing and Urban Development (HUD) has proposed yet another policy that will destabilize immigrant families, putting Illinois seniors and children in particular at risk.

In February, HUD published a proposed rule that targets mixed immigration status families (households with members who are both eligible and ineligible based on immigration status) who receive HUD-funded housing. Overall, the Center on Budget and Policy Priorities (CBPP) estimated these changes could cause 80,000 people nationwide to lose their rental assistance, including 37,000 children.

Currently, federal law and longstanding HUD policy allow for mixed-status families to live under the same roof and receive HUD subsidies for only those members of the family who are eligible based on immigration status. The proposed rule would eliminate this assistance, requiring families to either separate or face potential eviction and housing instability.

Additionally, through the proposed processes, many more people, including U.S. citizens, would have to verify their citizenship by providing specific documentation. The CBPP reports that approximately 3.8 million US citizens lack proof of citizenship and 17.5 million cannot easily access those documents—putting many more people at risk of losing their housing because they cannot meet the high burden of the proposed rule.

How you can help:

File a public comment opposing this cruel rule.

In collaboration with the Keep Families Together campaign, Housing Action is mobilizing people to oppose this proposed rule and keep families together, safe, and housed. Take just 5 minutes and join us:

1. Visit regulations.gov to file a public comment.
2. Draft your comment; feel free to customize one of the Keep Families Together examples. Fill out the complete form and hit submit.
3. Let the campaign know you submitted a comment.

All comments must be submitted by April 21, 2026.

Your voice makes a difference. In 2019, we mobilized our collective voice to tell HUD and the Trump Administration that we opposed a similar cruel rule. It worked; the rule was never adopted. Now we need to create a new flood of comments and refuse to allow this rule from being adopted.

Thank you for helping keep families together.

Stay Tuned

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Deadline: 4:00 pm CT on Friday, February 13, 2026

Housing Action Illinois invites organizations across the state to sign on to a letter opposing HUD’s proposal to eliminate its Fair Housing Act disparate impact regulations.

HUD’s Notice of Proposed Rulemaking, published January 14, would eliminate critical enforcement regulations that help identify and address housing discrimination that is not be overt, but still causes harm, particularly to communities of color, people with disabilities, and families with children.

The Fair Housing Act (FHA) prohibits housing discrimination based on race, color, national origin, sex, disability, familial status, and religion.

There are different types of discrimination, including intentional discrimination (e.g., a landlord refuses to rent to a family because the household includes young children) and discrimination that has a disparate impact based on a protected characteristic such as race or sex (e.g., a local ordinance has an unjustified disproportionate effect on Black residents but does not explicitly mention race).

While intentional discrimination is often easier to uncover, disparate impact helps identify discriminatory practices that are facially neutral. Discriminatory housing policies are not always overt; thus, disparate impact is an important tool to enforce fair housing protections.

The U.S. Supreme Court decided in 2015 that the FHA allows for disparate impact claims. HUD rescinding the current disparate impact regulations cannot change the underlying law. However, HUD’s existing regulations promote a consistent understanding of how to analyze disparate impact claims and are worth keeping.

We urge HUD to fully enforce the Fair Housing Act, including through the use of disparate impact.

The deadline to add your organization’s name to our letter is 4:00 pm CT on Friday, February 13, 2026.

Please join us: add your organization to the letter »

Stay Tuned

Sign up for our Policy Advocacy alerts »

Support our work by donating or becoming a member today »

For nearly forty years, Housing Action Illinois has led the movement to expand affordable housing and end homelessness across our state. Our year-round collaboration with other advocates, our members and allies, direct service providers, and people with lived experience of housing instability informs this annual policy agenda, which serves as a roadmap for our advocacy work.

Our 2026 Policy Agenda includes a variety of federal and state level initiatives focused on:

• Protecting federal housing programs »
• Ending homelessness »
• Expanding affordable rental housing & protecting renters »
• Promoting sustainable homeownership »

If you’re interested in a summarized agenda, you can view a PDF one pager here »

View our 2026 Mid-Session Legislative Update »

The Problems We Face Today

As 2026 begins, we recognize that the landscape in which we’ve been working has changed drastically. Still, we are facing a situation long in the making: the culmination of many years of under-investment in affordable housing, stagnant wages, rising rents, and systemic discrimination. The supply of affordable homes is simply not enough to meet our communities’ needs.

As federal policy decisions have exacerbated the increase in costs for basic needs such as housing, health care, and food, the term and issue of “affordability”—though not new—has caught on in the public discourse and gained fresh urgency.

While people facing housing instability all have their own unique challenges, they share one thing in common: the need for a stable, affordable home that can serve as a foundation for their lives. We continue to make sure public resources and policies relate to housing as a basic human need and a human right.

For all the issues we work on, we can point to data and other evidence that systemic inequities and discrimination worsen these problems and disproportionately impact people based on race, ethnicity, disability, gender, age and other factors. All of our campaigns we work on have a racial and/or economic justice component.

Advancing Solutions

This agenda focuses on investments and policy changes that will bring us closer to an Illinois where everyone has a stable, affordable place to call home. Housing Action prioritizes systemic change that will end homelessness, expand affordable rental housing, and build sustainable homeownership in all Illinois communities.

We support proven strategies—such as Housing First programs, tenant protections, fair housing enforcement, housing counseling, and homelessness prevention—while aiming to address root causes. Our emphasis is on policies that will stabilize households, preserve existing affordable housing, prevent displacement, and create pathways to long-term housing security and homeownership.

In the past year, we have faced tumultuous challenges at the federal level, and in 2026, we will continue to ramp up our federal advocacy in response. At the same time, we will advocate for key state legislation that protects people, communities, and programs that work.

There are many ways to get involved; you can support this work by:

• Sharing this agenda
• Visiting our newly launched Action Center to join campaigns, endorse bills, contact legislators, and more
• Becoming a member
• Making a donation

Whatever action you take, we hope you will join us.

2026 Federal Policy Agenda

Advocating for People Who Need Housing and Protecting the Federal Programs that Serve Them

In 2025, the Trump Administration significantly reduced HUD’s workforce and proposed eliminating many programs entirely, as well as recommending cutting the HUD budget in half. As we enter 2026, essential, evidence-based programs that have been historically under-funded are facing intensified threats.

We are advocating for the highest possible funding level for the HUD budget, overall. Specific programs and resources at stake, which we are mobilizing to defend, include:

• Housing First programs to end homelessness. More than $182 million in current Continuum of Care funding is at risk; these resources support permanent supportive housing, rapid rehousing and other critical programs across Illinois.
• Fair housing education and enforcement. These programs protect people from housing discrimination and ensure the freedom to live in the community of one’s choice.
• Housing counseling programs. These provide unbiased, expert guidance to help individuals and families achieve financial stability, become homeowners or renters, and navigate challenges such as eviction or foreclosure.
• Housing Choice Vouchers, which make it possible for nearly 100,000 households in Illinois to afford the rent and lift families with children, people with disabilities, seniors and others out of poverty.

We know that other challenges and needs will arise during the year, and we will be prepared to respond and defend other programs and policies as needed.

2026 Illinois General Assembly Agenda

Preventing & Ending Homelessness

Protect & Increase Funding for the State Plan to End Homelessness

Chief Sponsors: Seantor Adriane Johnson (SB 2969) and Represenative Lindsey LaPointe (HB 4568)

We need continued annual state investments in homelessness programs to address current threats to federal funding and to fully implement HOME Illinois, the state’s plan to prevent and end homelessness. While the state is facing its own budget challenges, we cannot stop investing in programs that serve our most vulnerable residents, people who have no place to call home.

Shelters and outreach programs continue to be overstretched and underfunded, hourly wage workers and families are sleeping in cars, and punitive local responses—such as ticketing and fining people who are unsheltered for sleeping in parks or in their cars, or for resting on park benches—are on the rise.

For some programs under HOME Illinois, we are urging Governor Pritzker to support modest funding increases, totaling $28.5 million, to advance the state’s plan to prevent and end homelessness. We are also advocating for an additional significant increase for Permanent Supportive Housing to help offset potential losses in federal funding. We request:

• $14 million increase for the Emergency and Transitional Housing (ETH) program to fund approximately 700 new shelter beds. This investment addresses part of the 5,379 shelter beds identified as needed in the HOME Illinois plan and is especially critical as more municipalities pass ordinances that outlaw encampments and criminalize homelessness.
• $7.5 million increase across three line items funding Supportive Housing Services. Investments in essential case management services have not kept pace with the expansion of new supportive housing units. Our request will support supportive housing services and provide the necessary services to keep permanent supportive housing residents safe and stably housed.
• $5 million in additional funding for the Homeless Prevention Program to serve approximately 1,350 additional households.
• $2 million in funding for the Homeless Youth Program to help providers expand shelter capacity and case management services for youth experiencing homelessness.
• Additional funding, up to $60 million, for Scattered Site Permanent Supportive Housing to make up for federal funding that is still at risk of being lost due to proposed policy changes to the federal Continuum of Care program.

Funding these increases will help build on previous investments and help to continue sustained efforts to reach functional zero homelessness in our communities.

Our state budget request is subject to an increase based on what happens with federal funding for the Continuum of Care Program. We also realize that the State of Illinois needs additional progressive revenue to adequately fund these and other priorities (see more information on that below).

See fact sheet »

For more information, contact: foluke@housingactionil.org

Partners: Homeless service providers throughout the state, Chicago Coalition to End Homelessness, Illinois Shelter Alliance, Supportive Housing Providers Association

Expanding & Preserving Affordable Rental Housing

Pass the Community Safety Through Stable Homes Act

Chief Sponsors: Senator Karina Villa (SB 2264) and Representative Jennifer Gong-Gershowitz

This bill prevents discrimination and protects renters from being unfairly forced from their homes due to so-called “crime-free housing and nuisance ordinances” (CFNOs). These ordinances discourage people from calling 911, disproportionately harm survivors of domestic violence and people with mental health issues, and destabilize households. This legislation will help people contact police without fear and focus on better responses to crime while also keeping individuals and families in their homes.

This legislation builds on five years of organizing and advocacy to challenge local CFNOs across Illinois.

See press coverage regarding introduction of our 2024 legislation on this issue and subsequent coverage about a case challenging a local CFNO »
Read national New York Times press coverage »
See fact sheet »
Learn more & endorse »
For more information, contact: bob@housingactionil.org

Partners include: Chicago Coalition to End Homelessness, Chicago Lawyers’ Committee for Civil Rights, Illinois Coalition Against Domestic Violence, Open Communities, The Network: Advocating Against Domestic Violence

Stop Criminalizing People Experiencing Homelessness

Chief Sponsor: Representative Kevin Olickal (HB 1429)

We will continue to work on HB 1429, to stop the increasing criminalization of people experiencing unsheltered homelessness by local governments in Illinois. We will also advocate that local governments partner on constructive solutions to ensure that everyone has a safe affordable place to call home, such as increasing street outreach and access to shelter.

This bill protects people from being fined or penalized for basic survival activities, such as trying to stay warm, resting, and eating. In response to a 2024 U.S. Supreme Court ruling, Johnson v. Grants Pass, we are aware of more than 30 local municipalities that have adopted ordinances criminalizing homelessness.

See fact sheet »

See press coverage »
Learn more & endorse »
For more information, contact: foluke@housingactionil.org

Partners include: Homeless service providers from throughout the state, Chicago Coalition to End Homelessness

Pass the Rental Affordability and Fee Transparency Act

Chief Sponsors: Representative Nabeela Syed and Senator Mike Simmons (HB 3564)

This bill addresses the mounting move-in fees and non-optional junk fees that renters are facing. Fees that have typically been included in the price of rent are now being tacked on, making price shopping for leases difficult and leading to surprise fees for renters. This legislation requires that landlords place all non-optional fees on the first page of the rental agreement, and prohibits 11 different junk fees that are simply unnecessary. The legislation works to ensure that fees are fair and transparent.

See fact sheet »
Learn more & endorse »
To get involved, contact: bob@housingactionil.org

Partners include: Law Center for Better Housing, New Moms, Supportive Housing Providers Association

Protect Tenants in Federal Subsidized Housing

Chief Sponsors: Senator Ram Villivalam (SB 3084) and Representative Maurice West (HB 4377)

This legislation preempts a Trump administration proposal to allow Public Housing Authorities (PHAs) and owners of project-based Section 8 housing to establish work requirements and time limits. The bill will prohibit these policies that could result in people losing their housing, unless required by federal law. Decades of research show these policies are ineffective and costly, as well as difficult to administer. Voluntary programs to help people increase their incomes and improve their job skills are far more effective and will remain permissible under this bill.

See fact sheet »
For more information, contact: bob@housingactionil.org

Partners include: Impact for Equity

Preserve Affordable Homeownership

Support Homeowner and Community Interests in Property Tax Sale Reforms

Chief Sponsor: Senator Celina Villanueva (SB 3940)

In response to the U.S. Supreme Court’s Tyler v. Hennepin decision, we are advocating for property tax sale reforms that protect homeowners’ equity and prevent unnecessary displacement. Under Illinois’ current tax sale system, people can lose their homes and all accumulated equity over relatively small tax debts. We support a solution that would require competitive auction of the property and return the most money to the person who lost their home.

This is a matter of racial justice as well as housing justice; our 2021 research found that the vast majority of tax sale evictions by the Cook County Sheriff occur in majority-Black communities.

This legislation we are pursuing also includes provisions to prevent homeowners from becoming delinquent on their property taxes in the first place and making it more affordable to redeem past due property taxes.

See fact sheet »

See press coverage »
Learn more about the Tyler v. Hennepin case and reform options for Illinois »
For more information, contact: bob@housingactionil.org

Partners include: Chicago Community Trust, Cook County President’s Office, Cook County Treasurer’s Office and Neighborhood Housing Services of Chicago

Increase Resources for Senior Home Repair: Fix Our Homes Illinois

Chief Sponsor: Representative Kevin Olickal (HB 5169 and HB 5170)

We are members of Fix Our Homes Illinois, a broad-based coalition dedicated to ensuring that Illinois provides low-income older homeowners the resources they need to age safely, comfortably, and affordably at home. The coalition is advocating for HB 5170, The Senior Home Preservation Program Act, creating a program provide eligible low-income older homeowners with up to $40,000 worth of basic home repairs by qualified home repair specialists at little to no cost to the homeowner. The accompanying appropriations bill (HB 5169) requests $22 million over three years.

See press coverage »
See fact sheet »
Learn more & endorse »
For more information, contact: foluke@housingactionil.org

Partners include: H.O.M.E.

Even More Priorities

We continue to partner with others on a variety of equally important issues; stay tuned for more information about efforts to advance these and other campaigns:

• Progressive Revenue: As a member of the Illinois Revenue Alliance and Responsible Budget Coalition, we advocate for progressive and equitable revenue streams for the State of Illinois to better fund programs that are essential to basic human needs and help individuals and families thrive. At a time when federal budget cuts to health care, food assistance and more are making it more challenging for the residents of our state, there needs to be a greater focus generating revenue to fund our short and long-term needs. This will require people and corporations with the highest incomes to do a bit more to satisfy the moral imperative of supporting Illinois’ lowest-income households and communities.
  • Worldwide Combined Reporting (HB 5318/SB3486) (West/Martwick): This ensures that multinational corporations cannot shift assets to avoid Illinois tax. This could contribute to $1.2 bill in revenue annually.
  • Billionaire Tax (HB 5215/SB 3376) (Mah/Villa): Taxes the asset growth of billionaires to ensure they’re paying their fair share, just like low and middle income residents do. This could bring in $916 million in revenue annually.
  • Digital Advertising Tax (HB 4894/SB 3353) (N. Hernandez/Peters): A tax on the largest companies’ digital advertisements. Estimated to bring in $1.1 billion annually.
  • Decoupling from Federal Tax Giveaways (HB 5125/SB 3796) (LaPointe/Collins): Disentangling corporate loopholes in Illinois from federal tax code, with the potential to bring in approximately $710 million annually to Illinoisans.
• Federal and IL CRA: We co-lead the IL CRA Coalition, a group of organizations dedicated to protecting and strengthening the federal and the Illinois Community Reinvestment Acts as tools for building more equitable communities and addressing the racial wealth gap. In 2026, we will continue our outreach and education for community based organizations and other stakeholders about the IL CRA, monitor the state exam process as it ramps up, and be prepared to comment on any proposed federal rule changes should they be released this year.

Other issues we’ll be supporting in 2026 include strengthening Community Land Trusts, the State of Illinois’ Annual Comprehensive Housing Plan, and various measures to increase the supply of housing. 

Take Action

Visit our Action Center »

Support our work by donating or becoming a member today »

Better Than the Alternatives, Still Not Good Enough: What’s in the Senate HUD Budget

On July 24, the Senate Appropriations Committee approved its FY2026 Transportation, Housing and Urban Development (THUD) budget proposal—offering a much better alternative to proposals from the House and the Trump administration. The bill passed by a vote of 27-1, demonstrating that Republicans and Democrats worked together to negotiate the package–an unfortunately rare example of bipartisanship in the current environment. Illinois Senator Richard Durbin, a member of the committee, voted in support.

The Good News

Overall, the Senate bill provides $73.3 billion for HUD, a modest increase compared to the current total funding. It’s also far better than the House’s $67.8 billion or the Trump administration’s proposal to slash HUD funding by 44%. The Senate bill also:

• Rejects harmful proposals to combine and block grant certain programs and does not give HUD the power to waive or create alternatives to key statutory requirements, such as income definitions, rent calculation formulas, or eligibility requirements and definitions.
• Largely preserves funding for programs at risk in other proposals, such as HOPWA, fair housing, housing counseling, and others.

The Bad News

Despite being better than the other proposals, the Senate bill still falls short, meaning that fewer individuals and families will receive assistance and some people will lose their home. The Senate bill:

• Fails to fully fund all existing Housing Choice Vouchers.
• Does not provide enough funding to renew all existing Continuum of Care projects to end homelessness with necessary funding increases to maintain existing services.
• Cuts funding for public housing, both operating and capital budgets.
• Provides no funding to maintain the Emergency Housing Voucher Program, which is currently keeping more than 59,000 households across the country housed, including 1,800+ in Illinois.

Congress has until October 1 to finalize the FY2026 budget—or risk a shutdown or continuing resolution. Passage of the budget will require 60 votes in the Senate and bipartisan co-operation.

More Information & Action Steps

• See the press release from Senators Durbin and Duckworth, which provides a detailed summary of the provisions of the THUD bill. It includes Congressionally Directed Spending initiatives, of which there are numerous projects to create affordable housing and end homelessness.
• Read the National Low Income Housing Coalition’s analysis of the Senate budget proposal.
• Contact your members of Congress. Organizations can also sign a national letter urging Congress to reject cuts to HUD programs and instead provide the highest level of funding possible.

Other Critical Federal Housing News

Trump Administration’s Executive Order on Homelessness is Unjust and Counterproductive

Housing Action Illinois joins all our allies in condemning the Trump administration’s July 24 Executive Order on homelessness, which criminalizes poverty and ignores proven solutions. We oppose this order because it will unfairly penalize people, including families with children, for our nation’s failure to treat housing as a basic human right and to provide the resources necessary to ensure that everyone has a safe, decent and affordable place to call home.

We also oppose the order because it is counter to evidence-based Housing First strategies and promotes criminalization and institutionalization that supports treating people experiencing homelessness in unjust, harmful, and counterproductive ways.

As our allies and partners have said: 

Read a brief but useful analysis of some of the Executive Order’s provisions by Ann Oliva, CEO of the National Alliance to End Homelessness, in her July 28 weekly update. 

Progress in the Senate: Bipartisan ROAD to Housing Act of 2025 Advances

Also on July 24, the Senate Banking and Urban Affairs Committee unanimously passed the ROAD to Housing Act of 2025, a bipartisan legislative package to increase housing supply and housing affordability with more than 40 different provisions. Here are highlights that complement Housing Action’s current work:

• Housing Counseling: New funding pathway via the Mutual Mortgage Insurance Fund (MMIF), a federal fund that acts as the insurer of mortgages that are guaranteed by the Federal Housing Administration (FHA). These funds would to cover the cost of mortgage delinquency and default counseling by HUD approved housing counseling agencies for government insured mortgages, i.e., FHA, VA, and USDA loans.
• Whole-Home Repairs Act: Grants and forgivable loans for health/safety repairs for low- and moderate-income homeowners and small landlords (5-year pilot program at HUD, subject to appropriation).
• Affordable Housing Investments: Raises the Public Welfare Investment cap for the Office of the Comptroller of the Currency (OCC) and the Federal Reserve from 15% to 20%, which will enhance banks’ capacity to make investments in affordable housing.
• Transit & Housing: Incentivizes housing near transit through Federal Transit Authority project scoring.
• Shelter Flexibility: Allows states and localities that receive Emergency Solutions Grant funding apply to exceed the 60% spending cap on emergency shelter beds and street outreach.

Read the Committee’s bill summary. We hope the bill will receive a vote from the full Senate soon.  

Trump Administration Proposes Reintroduction of Unjust Mixed-Status Family Rule

On July 16, HUD advanced a proposed rule that could bar mixed immigration status families from certain assisted housing—a harmful move earlier proposed by first Trump Administration (but blocked) in 2019.

Currently, mixed-status families are able to live in assisted housing but have their subsidy prorated to reflect the proportion of household members that is eligible.

We’ll be joining national partners through the Keep Families Together campaign again to oppose these policy changes. 

Stay Tuned

Keep watch for future advocacy alerts and updates from us in the coming weeks, so that you can support our efforts to oppose cuts and harmful policies.

Sign up for our Policy Advocacy alerts »

Support our work by donating or becoming a member today »

In the aftermath of the reconciliation bill, which was signed into law on July 4—and which includes deep, harmful cuts to health care, food assistance, and more to pay for tax cuts for the most affluent in our society—Congress has turned its attention to creating next year’s federal budget.

Housing Action is alarmed by harsh cuts to critical housing programs in both proposed budgets from the White House and the House Republicans.

Appropriations vs. reconciliation—what’s the difference?

House Republicans Propose Harmful Cuts to HUD in FY26 Budget

On July 13, the House Committee on Appropriations released their draft FY26 Transportation, Housing and Urban Development (THUD) spending bill. The proposal from House Republicans would fund HUD at $67.8 billion—$939 million less than the $74.6 billion allocated in FY25.

While the cuts are not are not as severe as those proposed by the Trump administration, they still include deeply unjust spending reductions:

• A $773 million decrease for the Housing Choice Voucher program overall and level funding—$32.14 billion—for voucher renewals. Because the cost of rent increases each year, flat funding acts as a cut to rental assistance programs.
• Inadequate funding to ensure the continuation of Emergency Housing Vouchers (EHVs) for all those currently using them. Created in 2021, nearly 60,000 households nationwide currently rely on an EHV to keep a roof over their heads, including more than 1,800 in Illinois.
• $5 billion for public housing operating costs, a decrease of $501 million, making it harder for Public Housing Authorities around the country to serve the nation’s 807,000 households living in public housing, which include 1.6 million people.
• $2.28 billion to public housing capital needs, a decrease of $1.12 billion, despite that the backlog of neeed maintainence and and repair projects is several multitiudes larger than current funding.
• A 66% decrease for fair housing programs, including enforcement. This is in line with other actions by the Trump adminstration to make housing discrimination easier and weaken the federal government’s affirmative duty to help ensure everyone has equal housing opportunities.
• Totally eliminating funding for HUD-Approved housing counseling agencies, which assist people with a wide range of housing needs, including becoming a first-time homeowner, avoiding foreclosure, improving credit scores and financial wellness and how to identify a rental property owner who will lease a home to you.
• Totally eliminating funding for the HOME Program, a key funding source for Low Income Housing Tax Credit developments, but also to create and preserve a variety of other affordable housing to rent or to own.
• Reducing HUD staff by 26%, consistent with reductions already implemented by HUD Secretary Scott Turner.
  

The House budget does include some budget increases and rejects some of the most troubling White House policy proposals. For example, the House bill does not include the Trump administration’s proposal to consolidate Homeless Assistance Grants and the HOPWA (Housing Opportunities for People with AIDS program) into the Emergency Solutions Grant program while also zeroing-out HOPWA funding.

Instead, the House bill would provide $4.158 billion in funding for Homeless Assistance Grants, a $107 million increase from the $4.05 billion provided in the final FY25 bill, and will continue funding HOPWA as a separate program at $505 million.

However, this level of funding for Homeless Assistance Grants is not enough funding to renew all existing projects, and the proposed budget does nothing to create the new resources needed to address increasing homelessness.

At the July 14 hearing on the THUD budget, House Democrats, including Representative Mike Quigley (IL-5th), strongly opposed the proposal. Representative Quigley expressed support for continued funding of HOPWA and opposed proposed cuts, including a 7% overall reduction for rental and homelessness assistance.

Even more troubling, the bill includes language that would give the Trump administration broad authority to waive or create alternatives to key requirements for rental assistance and public housing. This could pave the way to changing income definitions, rent calculation formulas, and eligibility rules—opening the door to time limits, work requirements, and higher rent burdens for low-income families.

The Senate is expected to release its own HUD funding proposal soon, and negotiations over the federal budget will continue through September or possibly beyond.

Find out more from the National Low Income Housing Coalition’s full analysis of the House budget proposal and their budget chart.

Housing Action Illinois is in close contact with staff for Senator Richard Durbin, who is a member of the THUD Appropriations Subcommittee in the Senate. We are communicating regularly about how we can work together to oppose harmful cuts to programs that create affordable housing and end homelessness.

Stay Tuned

Keep watch for future advocacy alerts and updates from us in the coming weeks, so that you can support our efforts to oppose cuts and harmful policies.

Sign up for our Policy Advocacy alerts »

Support our work by donating or becoming a member today »

President Trump’s high-level budget proposal, released on May 2, proposes combining five rental assistance programs—Housing Choice Vouchers, public housing, project-based rental assistance, Section 202 Housing for the Elderly and Section 811 Housing for Persons with Disabilities—into a block grant to states while also cutting funding by $27 billion (43%) below the current level.

A more detailed budget, with proposed funding levels for specific programs, will be released later in May.

It’s not possible to come up with precise estimates of the number of individuals and families that would lose their housing based on the limited info in the budget proposal, but to provide a sense of the scope of the cuts, this is what reducing the number of households in Illinois that are assisted by 43% would mean:

• Terminating Housing Choice Vouchers for 41,409 of 96,300 households
• Taking away Project-Based Section 8 rent assistance from 26,144 of 60,800 households
• Forcing 15,556 of 36,200 public housing households from their homes
• Displacing 2,881 of 6,700 households that include elderly and/or disabled residents who are supported by Section 202 and Section 811

Block granting the program would totally eliminate the federal administrative structure that supports these programs, making states take on the responsibility with totally inadequate funding to do so. And it would certainly mean that fewer households are assisted each year, as the cost of subsidizing each household goes up.

421,500 people in 221,000 Illinois households rely on these five federal rental assistance programs to afford modest housing. Two-thirds, 67%, are seniors, children, or people with disabilities.

The Trump administration proposal also would also:

• Combine federal programs that prevent and end homelessness–Continuum of Care (CoC) Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Solutions Grant (ESG)–while also significantly cutting funding. This funding helps support more than 6,400 shelter beds and 10,400 permanent supportive housing units in Illinois
• Cut off funding for more than 1,800 Emergency Housing Choice Vouchers created during the previous administration, forcing these households back into homelessness
• Eliminate the Community Development Block Grant (CDBG) and the HOME Investment Partnerships Program
• Impose a two-year time limit on most recipients of rental assistance and homeless assistance
• Cut funding for lead hazard reduction in homes and water
• Cut fair housing funding based on the argument that its primary function is supporting DEI initiatives

The pages on the HUD proposal are on page 26 and 27 of the budget overview.

Between the CoC, ESG, HOPWA, CDBG and HOME Program, more than $411.6 million came to Illinois in federal fiscal year 2023.

When the complete budget proposal is out, we will work with our national partners to develop a more exact analysis of the impact on people in Illinois.

Congress needs to reject these proposals and expand housing investments toward the goal of guaranteeing that everyone can afford a safe, stable home.

What We Have Been Doing

Since our last update, Housing Action has been focused on getting members of the Illinois Congressional delegation to sign onto “Dear Colleague” letters in support of increasing homeless assistance funding in next year’s budget. Getting many signatures on these letters is a primary means to demonstrate members of Congress care about a specific issue. We expect more Dear Colleague letters on additional issues will be circulated soon.

We are have organizing our members and allies to meet their House members who are in the majority (Representatives Darin LaHood, Mike Bost and Mary Miller) so that their representatives understand the harmful impacts of what is being proposed. We are communicating not just regarding the HUD budget, but also the impact of the overall budget reconciliation process on cutting basic human needs like healthcare and food assistance to pay for tax cuts for the most affluent individuals and corporations.

What You Can Do

Use the National Low Income Housing Coalition’s toolkits and resources to take action:

✅ Tell Congress: Housing is critical. Use the NLIHC Take Action page to contact your representatives. Let them know affordable housing and homelessness programs are essential to your community.
✅ Share real stories. Lawmakers respond to the voices of their constituents. Use this guide to share personal stories that show the human impact of these proposed cuts.
✅ Advocate for homeless services. Visit the National Alliance to End Homelessness advocacy page to support vital homelessness programs.
✅ Defend Fair Housing. Urge your representatives to protect and expand fair housing programs in the federal budget.

Every call, every email, every story makes a difference.

Contact us at advocacy@housingactionil.org with questions or to get more involved.

In October 2023, after years of advocacy, long-overdue updates were made to the federal Community Reinvestment Act (CRA)—a critical law designed to ensure banks meet the credit needs of low- and moderate-income communities. These rule changes reflected the realities of modern banking, including the rise of online banking and lending services that didn’t exist when the CRA was last updated.

But in March 2025, the Federal Reserve, FDIC, and OCC announced plans to roll back those updated rules and return to outdated standards.

We at the IL CRA Coalition are deeply disappointed by this reversal. It’s a step backward for communities that deserve fair access to financial services and investment. We’re very grateful to all our partners and allies who helped shape the 2023 rules through public input and engagement.

Our work isn’t done. Our coalition will continue to advocate for a federal CRA that meaningfully addresses community credit needs and promotes racial and economic justice. We will continue to monitor changes to the federal CRA, including any potential future proposed rules, and we will keep you posted on how you can act alongside us.

This federal setback highlights why the Illinois CRA is more important than ever. Illinois became the second state in the nation to ensure all parts of the mortgage lending market—state-chartered banks, credit unions, and mortgage companies—are held accountable for fair lending and investment practices. Our state law fills in the gaps left by federal rules and ensures more lenders are investing equitably in our communities.

We’re committed to working with regulators, community groups, and financial institutions to make sure the Illinois CRA is implemented fully and effectively. Our goal is simple: a fairer financial system where every community has the opportunity to thrive.

To learn more about the Illinois CRA and how you can get involved, visit ilcracoalition.org.

In the past few weeks, we have seen a sharp escalation in attacks on the nonprofit sector, deep federal staff and funding cuts, and serious threats to the programs that help build strong, thriving communities.

Now more than ever, your voice is needed.

Stand with us to defend the people, organizations, and values that hold our society together. We’ve outlined simple, concrete actions you can take right now to make a difference.

Thank you for standing up and speaking out.

Nonprofit Sector

Last week, President Trump called to revoke Harvard University’s 501(c)(3) tax-exempt status.

This move isn’t about security—it’s about punishing organizations that don’t align with the Trump administration’s ideology. Unilateral attempts to strip a nonprofit of its status without due process is not only harmful, it’s likely illegal. Any such action is a blatant example of egregious overreach and a direct threat to the rule of law.

If this attempt succeeds, it will set a precedent that can applied to any nonprofit organization. The real-world impact in Illinois could be severe: organizations could be forced to eliminate critical services or cease operations completely.

This is an attack on the entire nonprofit sector and the people who work everyday to serve our communities.

📣 TAKE ACTION:

Sign the Open Letter Rejecting Presidential Attacks on Nonprofit Organizations »

This letter is coordinated and co-hosted by the ACLU, Public Citizen, State Democracy Defenders Fund, Leadership Conference on Civil and Human Rights, and Americans Against Government Censorship. (See current signatories here.)

AmeriCorps

Housing Action Illinois runs an AmeriCorps VISTA program that helps places members with local organizations to build stronger communities and fight poverty. Right now, our program is still operating—but recent federal actions put its future at serious risk.

On April 16, Department of Government Efficiency (DOGE) officials abruptly shut down two AmeriCorps programs—NCCC and FEMA Corps—and placed most AmeriCorps staff on leave, effective immediately. As of April 23 at 9 am CT, there have not been reports of impacts to AmeriCorps programs beyond NCCC/FEMA Corps. However, DOGE is still at the AmeriCorps agency, and these sudden moves raise real concerns that more cuts are coming, threatening the entire AmeriCorps system and the communities it serves.

We need to speak up now to protect AmeriCorps and ensure funding and support stay in place.

📣 TAKE ACTION:

Call your elected officials using this script and instructions »

Please make these calls as soon as possible; our partners at Voices for National Service have created this action with the goal of flooding offices with calls in support of AmeriCorps in the next few days—time is of the essence. After you’ve called your representatives, please take one more minute to send a letter to your lawmakers using this form.

Stay Tuned for More

As noted in our 2025 Policy Agenda, our federal government, economy, and social infrastructure rely on nonprofits to deliver programs and funding to those who need it most.

So far this year, Housing Action Illinois has been mobilizing a core base of organizational supporters—including homeless service providers, housing counseling agencies, other community-based organizations, and individuals across the state—to let federal elected officials know we need to increase, not cut, federal investments in affordable housing and to speak out against reducing the workforce at HUD.

We’ve also been sharing those messages through press releases and media interviews. With our allies from around the country, we’ve also gone to the Capitol in DC to meet with our members of Congress and their staff people.

We’ll soon have another important opportunity to educate and mobilize. The Trump Administration is expected to release its proposed budget for fiscal year 2026 by mid-May, with an outline expected later in April. Early reports suggest it will propose massive spending cuts to HUD’s vital affordable housing and homelessness assistance programs.

Please keep an eye out for updates and action alerts from us in the coming days. Your voice will be crucial.

This year’s state legislative session has been moving at its usual hectic pace. Our team continues to spend plenty of time in Springfield to meet with representatives and their staff, attend hearings, and do everything we can to move our 2025 Policy Agenda forward.

Now that we’re about halfway through the Illinois General Assembly session, we wanted to give a quick update on some of our advocacy work.

Thanks to everyone who has supported one of Housing Action Illinois’ advocacy initiatives during the first quarter of 2025.

State Advocacy Update

State Budget

Governor Pritzker’s fiscal year 2026 budget proposal, announced in February, included $282.7 million for the HOME Illinois line item, a 2.6% percent reduction compared to the current year ($290.3 million). We understand the State of Illinois’ budget challenges and we appreciate efforts by the governor’s office and state agencies to use existing resources as effectively as possible.

The General Assembly will pass a budget by the end of may, and we are still speaking with legislators the critical need to increase overall funding each year, particularly for emergency shelters, which serve people with absolutely no place else to go.

Read our full budget response, issued jointly with the Illinois Shelter Alliance »

Bills Passed Out of Committee

We’re pleased to share that two of bills we are working on at the State Capitol have passed committee:

• Stopping the Criminalization of Homelessness: HB 1429, sponsored by Representative Kevin Oilckal, protects people from being fined or penalized for basic survival activities, such as trying to stay warm, resting, and eating. This is a response to the recent U.S. Supreme Court decision in Grants Pass v. Johnson, which sanctioned local government ordinances criminalizing homelessness. View WAND TV’s press coverage of the committee hearing and endorse the campaign »
• Advancing Fair Housing: The Community Safety Through Stable Homes Act, SB 2264, sponsored by Senator Karina Villa, regulates the use of so-called “crime-free housing and nuisance ordinances.” These local Illinois laws can force landlords to evict tenants because of 911 calls or other alleged “nuisance” activity. This punishes renters for calling for help and puts survivors of domestic violence, as well as people with disabilities, at risk. Read Senator Villa’s press release and view WAND TV’s coverage of the committee hearing, including some of Senate President Harmon’s comments in support of the bill. Learn more and endorse the campaign »

Bills We Are Working to Move

We expect other bills we are working on to pass towards the end of the General Assembly session as part of various omnibus legislative packages, including:

• Incentivize Rental Housing Production: SB 1911 and HB 3466 extend and clarify the Affordable Housing Special Assessment Program, which incentivizes the preservation and creation of affordable rental housing in newly constructed and substantially rehabbed rental properties.
• Property Tax Reform: We are also part of a coalition advocating to change state law, through SB 2029 and HB 3146, to help homeowners pay delinquent property taxes and maintain equity if they lose their homes due to unpaid property taxes. This would also bring Illinois state law into compliance with the U.S. Supreme Court decision in Tyler v. Hennepin.
• Eliminate Matching Fund Requirements for Shelters and Supportive Housing: We also continue to advocate for legislation, HB 1862, that will eliminate matching fund requirements for the Emergency and Transitional Housing Program, as well as the Supportive Housing Services Program. These match requirements create needless barriers to nonprofits making use of state funding. We are working to have this included in the budget implementation legislation at the General Assembly session.

Federal Advocacy Update

At the federal level, we continue to work with partners around the country and members of our Illinois Congressional delegation to oppose budget cuts and policies that weaken the federal role in supporting the housing needs of people not served adequately or fairly in the private market.

Speaking Up for Vital HUD Programs

A year-long stopgap funding bill, known as a continuing resolution (CR), was recently passed to extend funding for the federal government through the remainder of federal FY 25. Unfortunately, the budget does not provide enough funding to support all existing Housing Choice Vouchers and underfunds other federal programs that end homelessness and create affordable housing,

Turning our attention to the future, we have been speaking up with the media about the harm that further cuts to HUD programs and staff will have on Illinois communities. Last week, Policy Director Bob Palmer appeared on WGN News to talk about how federal funding to help people afford a home is much more important than creating tax cuts for wealthy households and corporations

Our Housing Policy Organizer, Foluke Akanni, was just in Washington DC to meet with the housing staffers of many of our federal elected officials to let them know how the full-year CR and subsequent cuts would negatively impact efforts to end homelessness.

This builds on other recent work, such as participating in a February press conference with Senator Durbin, Representative Quigley, and more of our Congress members to oppose budget and tax policies that would essentially force cuts to Medicaid, food assistance and other critical safety net programs.

Earlier in March, letters to the editor from our Executive Director Sharon Legenza opposing cuts to HUD staff and programs were published by the Chicago Sun-Times and Crain’s Chicago Business. And Bob Palmer joined Heartland Housed in sharing concerns with WCIA for a story picked up by Our Quad Cities News.

Please reach out if you would like to collaborate on media outreach to help people understand how HUD programs support your community.

Speak Up With Us

There are multiple ways to support our work—from contacting your elected officials to filling out a witness slip for a committee hearing at the State Capitol to endorsing one of our campaigns. If you have any questions about getting involved, please contact Policy Director Bob Palmer.

Support our work by donating or becoming a member today »