Policy
Shawn Poynter / There Is More Work To Be Done
Shawn Poynter / There Is More Work To Be Done
The Biden Administration’s budget for fiscal year 2025, released on March 11, 2024, includes proposals for HUD and other housing programs – USDA, the Low-Income Housing Tax Credit, and others – that are part of broader Administration efforts to help meet increasing housing costs and address homelessness. If the budget were adopted as proposed, several pieces of this mosaic would be mandatory funding rather than discretionary, and others would be tax credits. Discretionary funds are subject to annual appropriations, while mandatory spending is not, so it is not subject to the caps on discretionary spending imposed by the 2023 debt limit agreement.
Details are provided in the table below.
The recording and slides from HAC’s March 13 webinar on Rural Housing in the Fiscal Year 2025 White House Budget are posted here.
— HAC’s analysis of FY24 appropriations for USDA housing programs is available here. —
The budget would reduce funding for many of HUD’s housing production programs, including HOME, CDBG, SHOP, and Native American housing. It requests a total of $1.053 billion for Native American housing, just barely above the $1.02 billion provided in FY23 and notably lower than the $1.34 billion just adopted for FY24.
Tenant support fares somewhat better. For example, the budget proposes a total of almost $32.8 billion for Tenant-Based Rental Assistance (Housing Choice Vouchers), of which $29.25 billion is intended to renew all existing vouchers. An additional $241 million would provide 20,000 new incremental vouchers. (Separately, the mandatory funding proposals would guarantee vouchers to all extremely low-income veterans and all youth aging out of foster care.)
The budget also requests $30 million for the Recovery Housing Program, which allocates funds to states to provide temporary housing for individuals recovering from substance use disorders, including opioids.
The Administration’s proposals for mandatory spending programs cover production of new units, tenant assistance, and homelessness solutions.
The Administration also proposes requiring each Federal Home Loan Bank to contribute 20 percent, rather than the current 10 percent, of annual income to the Affordable Housing Program. It calculates the change would raise an additional $3.79 billion for affordable housing over the next decade and assist nearly 380,0000 households.
Program ($ in millions) |
FY23 Final | FY24 Final | FY25 Budget | FY25 House | FY25 Senate* | FY25 Final* |
CDBG | $3,300 | $3,300 | $2,900 | |||
HOME | 1,500 | 1,250 | 1,250 | |||
PRICE Manuf. Hsg. Prsrv. | 225 | 10 | 0 | |||
Self-Help Hmownrshp (SHOP) | 13.5 | 12 | 9 | |||
Veterans Home Rehab | 1 | 0 | 0 | |||
Rural Cap’y Bldg (RCB) | 6 | 6 | 5 | |||
Tenant-Based Rental Asst. | 27,600 | 32,387 | 32,756 | |||
VASH | 50 | 15 | 0 | |||
Tribal VASH | 7.5 | 7.5 | 5 | |||
Replacemts for 521 RA | – | – | 20** | |||
Project-Based Rental Asst. | 13,938 | 16,010 | 16,686 | |||
Public Hsg. Capital Fund | 3,200 | 3,410 | 3,312 | |||
Public Hsg. Operating Fund | 5,109 | 5,501 | 5,238 | |||
Choice Neighborhd. Initiative | 350 | 75 | 140 | |||
Native Amer. Hsg. | 1,020 | 1,344 | 1,053 | |||
Homeless Asst. Grants | 3,633 | 4,051 | 4,060 | |||
Hsg. Oppties for Persons w/ AIDS (HOPWA) | 499 | 505 | 505 | |||
202 Hsg. for Elderly | 1,075 | 913 | 931.4 | |||
811 Hsg. for Disabled | 360 | 208 | 256.7 | |||
Fair Hsg. | 86 | 86.4 | 86.4 | |||
Healthy Homes & Lead Control | 410 | 345 | 350 | |||
Hsg. Counseling | 57.5 | 57.5 | 57.5 |
* These columns will be filled in as the FY25 funding process progresses.
** Up to $20 million would be set aside to provide tenant protection vouchers to tenants who had USDA Section 521 Rental Assistance but are losing it because their building is losing or ending its USDA mortgage.