Of the nearly $7 billion in the FY 2026 appropriations bill working its way through Congress for the Department of Housing and Urban Development, 51.7% is slated for “economic development initiatives (EDIs)” designated by members of Congress outside of any competitive process or assessment of need. The Community Development Block Grant program captures most of the rest of the funding at $3.3 billion. Separately, the Native American/Indian community block grant program is to receive $100 million.
In the report language, Congress directs HUD to provide semi-annual briefings on the status of the EDIs and “to prioritize timely outreach and responses to EDI grantees to ensure successful execution of grants.” Apparently, some past earmarks in this account, perhaps dating back to 2024 appropriations, have not yet been distributed.
While the majority of the projects funded as EDIs are related to local community development priorities, several on the FY 2026 list appear to have connections to TBED and conventional economic development activities. Five examples provide a small glimpse at the range of regional innovation work that might be funded through the EDI process.
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Montgomery (AL) Regional Tech & Innovation Ecosystem Initiative Hub – $1.65 million
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Auburn University Advanced Manufacturing Center for Workforce Development and the Jacksonville State University Center for Manufacturing Support – $6.5 million each
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University of Alabama in Huntsville Artificial Intelligence Research Infrastructure – $10 million
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Southern Arkansas University Tech Technology Innovation Center – $15 million
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Van Buren (ME) Small Business Incubator and Community Hub – $1.737 million
For more details on this potential TBED funding mechanism, HUD’s website has a section on community project funding. The House has a formal application process for its members each spring.
R&D and technology appropriations for HUD are tagged at $122.5 million ($16.5 million below FY 2025), with at least $72.9 million in FY 2026 for core research and technology, including $4.9 million for innovative building technologies and disaster relief research. The budget agreement provides $40 million for technical assistance, including $5 million for distressed cities.