Local Update: Pittsburgh Reopens 2026 Budget Amid $24M Gap
The City of Pittsburgh is reopening its 2026 budget in response to a growing structural deficit estimated at $24 million. City leadership cites rising expenditures and revenue shortfalls that may require difficult decisions, including potential spending cuts.
For community development stakeholders, this moment underscores the importance of sustained investment in community projects, services, and neighborhood stability — even amid fiscal constraints. Budget decisions made in the coming months could directly impact funding for critical programs, including housing, infrastructure, and neighborhood stabilization initiatives.
PCRG will continue engaging with city officials and partners to ensure equitable development and housing access remain central priorities as the budget process evolves.
State Update: Momentum Builds for Statewide Housing Action Plan
At the state level, momentum is building to implement key elements of Pennsylvania’s emerging Statewide Housing Action Plan.
The plan is currently moving from the planning phase toward early implementation, with policymakers expected to advance priority actions during this year's legislative session.
As policymakers and advocates align shared priorities, there is a growing recognition that housing supply, affordability, and community revitalization must be addressed together.
Key strategies under discussion include tools such as zoning and land use reforms to enable higher-density housing, as well as expanded state funding mechanisms to support affordable housing development and preservation.
PCRG remains actively engaged in Harrisburg, working alongside partners to advance policies that support housing production, preserve existing affordable housing, and expand tools available to communities of all sizes. With bipartisan interest and increasing public awareness, 2026 presents a critical window to translate planning into action and deliver tangible results.
Federal Update: Bipartisan Housing Package Advances; CDFI Funds in Limbo
Significant progress was made in Washington last month with Senate passage of the 21st Century ROAD to Housing Act, a bipartisan package aimed at increasing housing supply and lowering costs nationwide. The package includes provisions to expand housing supply by reducing regulatory barriers to development and encouraging local zoning reforms tied to federal funding.
The legislation passed the U. S. Senate by a vote of 89–10 on March 12, signaling rare bipartisan alignment on housing policy.
This builds on earlier action in the U. S. House of Representatives, which passed its own housing package — the Housing for the 21st Century Act — in February.
The two chambers must now reconcile differences between the bills before final legislation can be sent to the president, making the coming months critical for shaping the final package.
Together, these efforts represent the most significant federal movement on housing in a generation, reinforcing the growing consensus that bold action is needed to address the national housing shortage.
At the same time, PCRG joined national partners in urging the administration to release already appropriated resources. On March 19, the National Alliance of Affordable Housing Lenders sent a letter to Kevin Hassett, Director of the National Economic Council, calling for the release of more than $1 billion in funding through the CDFI Fund.
These funds — already appropriated by Congress — could support the construction or rehabilitation of an estimated 100,000 affordable homes nationwide. The letter highlights the proven role of Community Development Financial Institutions (CDFIs) in leveraging private capital to expand housing supply and support small businesses.
In Pennsylvania, CDFIs have played a critical role in financing affordable housing and small business development, particularly in disinvested communities, making the timely release of these funds especially important for local impact.
To date, key funding streams — including FY2025 and FY2026 appropriations, Capital Magnet Fund resources, and the Emergency Capital Investment Program — remain unawarded.
PCRG will continue advocating alongside national partners to ensure these critical resources are deployed as intended.
As these uncertainties continue, the Trump administration’s latest budget proposal underscores what’s at stake for housing and community development funding nationwide.
The administration’s FY2027 budget proposal requests $73.5 billion for the U.S. Department of Housing and Urban Development (HUD) — a roughly 13% cut — and proposes to eliminate or significantly reduce key programs like CDBG, HOME, housing counseling, and Continuum of Care. The proposal also targets broader community development infrastructure, including eliminating NeighborWorks America and cutting the CDFI Fund. While the budget outlines the Administration’s priorities, it is non-binding and marks the start of the congressional appropriations process (View Budget Overview). Notably, in previous Trump budgets, similar proposals to eliminate HUD programs were ultimately rejected by Congress, which continued funding many of these critical initiatives.
Keep an eye out for upcoming opportunities to engage with your members of Congress and make your voice heard!
Looking Ahead: Turning Policy Momentum into Local Impact
Across all levels of government, housing is no longer a fringe issue; it is a central economic and community priority. Whether navigating local budget realities, advancing statewide strategies, or advocating federal investment, PCRG remains committed to ensuring that policies translate into real impact for communities across Pennsylvania.