On January 21, HUD issued a request for public comments in the Federal Register regarding the methodology used to determine the Section 108 loan guarantee fee for fiscal year 2026. HUD previously announced it would reduce the fee from 0.82 percent to 0.58 percent of the principal amount of guaranteed loans under the Section 108 Loan Guarantee Program. The agency explained that the reduced fee reflects updated portfolio composition and revised estimates of future cash flows for defaults and recoveries, based on data from comparable municipal debt and industrial development bonds. HUD stated that the fee aims to offset credit subsidy costs for commitments awarded in fiscal year 2026, as required or authorized by statute, notwithstanding subsection (m) of Section 108 of the Housing and Community Development Act. The agency set an abbreviated comment period, with comments due on January 28, explaining the methodology had been publicly available since November 2025.