Government Shutdown Ends After 43 days—USDA Receives Full Year Funding
CARH Broadcast Email—Legislative Alert
November 14, 2025
On November 12, 2025, after 43 days of the federal government being shut down, President Trump signed into law legislation that temporarily reopens the government until January 30, 2026. The 43-day shutdown made history for the longest period that the federal government was not open due to a lapse of funding for federal agencies and their respective programs. During the shutdown, essential agency personnel were permitted to continue working under federal law, but without pay. The short-term Continuing Resolution (CR) provides that backpay will be given to employees.
A CR was needed prior to the start of the Fiscal Year (FY) 2026 on October 1, but because Congress could not pass any appropriations bills, a stopgap measure was required to avoid a shutdown. In September, the House of Representatives passed and sent to the Senate a temporary CR that would have kept the government open through November 21. However, because 60 votes were required for passage, the Republican-led Senate needed backing from seven Democrats. In the end, eight Democrats supported the measure, and the CR passed. Most Senate Democrats objected to passage of the bill because they wanted the CR to include the extension of enhanced Affordable Care Act subsidies that are due to expire at the end of 2025. The enhanced subsidies were enacted temporarily as part of COVID-related legislation that passed the Congress four years ago. The bill signed by President Trump on November 12 does not contain extension of these subsidies. However, Senate Majority Leader John Thune (R-ND) has promised that a vote will be taken on the issue before the end of the year.
Final passage in the Senate for the temporary CR was 60-40 and in the House 222-209. While a majority of agencies will receive temporary funding until January 30, it was agreed that the United States Department of Agriculture (USDA) would receive full-year funding for all its programs, including those administered through the USDA’s Rural Development (RD). USDA, together with Military Construction programs and funding for the Legislative branch, will all be funded for the entire remaining months of FY 2026.
Funding for RD’s housing related programs include the following levels of funding:
$1.715 billion – Section 521 Rental Assistance (RA). Language has been included that allows for RA contracts to be for 20 years, subject to annual appropriations.
The Stand-Alone Rental Assistance (SARA) pilot program, which permits properties to continue receiving RA when a Section 515 mortgage matures, would continue. The program would be expanded from 1,000 units in FY 2025 to 5,000 units in FY 2026, allowing an owner to preserve properties, without the regulatory and servicing issues surrounding a Section 515 mortgage.
$50 million – Section 515, of which $15 million can be used for new construction.
$400 million – Section 538 Guaranteed Multi-Family Housing Loan program.
$48 million – Section 542 Rural Housing Voucher program.
$30 million – Multifamily Revitalization and Preservation (MPR) program.
$75 million – IT expenses. This last item is of paramount importance for the multifamily portfolio and so that the SARA pilot program can be successful.
During the 43-day shutdown, employees at agencies were barred from responding to emails or performing work, including RD and the Department of Housing and Urban Development’s (HUD’s) transaction functions, resulting in a pause in deal closings. CARH is aware that there are many members who are facing end of the year deadlines. We have been told that agency staff are currently reviewing the pipeline of transactions to determine ability to close by year end. RD and HUD staff have already resumed responding to emails and we expect that both agencies should have more information for stakeholders in the coming weeks. CARH urges all members to follow up with your multifamily contacts as soon as possible.
Efforts are currently underway to garner agreements on other agencies’ appropriations bills. The HUD’s funding plays a crucial role in supporting and preserving rural housing properties throughout the country. CARH will be working with other housing groups to urge Congress to pass a full year funding bill so that programs will not be impacted by the January 30th deadline set forth by the CR signed into law this week.
There will undoubtedly be detailed discussions about the shutdown’s impact on rural housing programs at CARH’s Midyear Meeting, scheduled for January 26–28, 2026, at the Cheeca Lodge & Spa in Islamorada, Florida.
