
"Payment Delay: The U.S. Department of Housing and Urban Development (HUD) has notified PHAs that "shortfall payments" for December 2025 will be delayed. These are funds that cover the difference between local rental inflation and the PHAs' initial annual budgets. Cause: The delays and shortfalls are primarily attributed to the financial ramifications of the recent 43-day federal government shutdown and a general lack of sufficient funding in the continuing resolution budget for Fiscal Year (FY) 2025 to keep pace with rising national rent costs."
"HUD Response: A HUD spokesperson stated that the department is "working to make these awards to PHAs to ensure no disruption in program services". The agency had previously established a $200 million national shortfall fund, but this appears insufficient to cover the estimated $700 million to $800 million total shortfall. More than 500 PHAs are affected, including those in New York City, Boston, and Boca Raton."
HUD has notified public housing authorities that December 2025 Section 8 shortfall payments will be delayed, leaving PHAs to cover rising local rent inflation without federal backfill. The delays stem from a recent 43-day federal shutdown and insufficient FY2025 continuing resolution funding to match rent increases. More than 500 PHAs nationwide, including New York City, Boston, and Boca Raton, face gaps estimated at $700–$800 million. Some agencies have made partial landlord payments or halted payments entirely; tenants remain responsible for their rent and evictions are prohibited due to the delay. HUD has a $200 million shortfall fund and states it is working to make awards.
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