2024 BUDGET RECAP: SOME AFFORDABLE HOUSING WINS

In March, Congress passed the final spending package for fiscal year 2024 (FY24) that included critical funding for the US Department of Housing and Urban Development (HUD). HUD administers important affordable housing and homelessness services programs and, due to constrictions on the overall budget and the tensions of the current congressional climate, there was concern that funding for HUD programs would be substantially reduced. Housing Up and other DC nonprofits rely on support from HUD to fund many affordable housing and homeless services programs. Thanks to hard work from dedicated housing advocates and organizations, the FY24 budget includes significant wins for housing and homelessness priorities such as:

• A $2.1 billion increase (from the FY23 budget) in the Housing Choice Voucher program, one of our country’s main tools in providing affordable rental housing. The funding levels in the original proposed FY24 budget were much lower and would have resulted in the loss of 80,000-112,000 housing vouchers.* Thanks to the increased funding, the voucher program can be expanded to an additional 3,000 households in addition to maintaining all existing vouchers. For more info on housing vouchers, check out our ABCs of Housing series, here. 
• A $418 million increase in Homeless Assistance Grants. These grants provide funding to local governments and nonprofit providers to serve individuals and families experiencing homelessness. 
• $20 million in funding for the Eviction Prevention Grant program, which funds organizations and nonprofits that provide no-cost legal assistance and other eviction diversion resources to renters throughout the country. 
• Removal of provisions in the House of Representatives’ version of the budget that would have made it difficult to enforce existing policies aimed at ensuring fair housing and addressing long-standing racial inequality in the housing system. 

WHAT’S IN THE FY2025 BUDGET?

With the FY24 budget season concluded, the Biden Administration and housing advocates have turned to the FY25 budget process and priorities. Much like the FY2024 budget, the FY2025 budget will be working against an established cap on spending that limits major increases in domestic programs and agencies. The House Budget Committee has already released a FY25 budget resolution that proposes spending cuts of up to 30% over the next 10 years to programs like Medicare, Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and the Temporary Assistance for Needy Families (TANF) program, all important programs that help families we serve maintain their stability. 

Despite expected budget limitations, the Administration is proposing a number of program expansions and new programs that would substantially increase the amount of affordable housing and expand access to homeownership. Biden’s FY25 budget also includes:

• $32.8 billion for the Housing Choice Voucher program that will maintain rental vouchers for all currently assisted families and support an additional 20,000 households
• A new tax credit for first-time homebuyers of up to $10,000 over two years to ease affordability challenges
• An investment of more than $258 billion that would build or preserve over 2 million units of affordable housing 
• An expansion of the existing Low-Income Housing Tax Credit (LIHTC), a key source of funding for affordable housing development. For more on LIHTC, check out our ABCs of Housing Series.

HOW YOU CAN HELP

Housing Up will be joining the voices of organizations like the National Low-Income Housing Coalition (NLIHC) and other advocacy groups to urge Congress to continue funding important affordable housing and homeless services programs. You can join us and add your commitment to making safe, affordable housing a reality for all by connecting with your local elected representative and following organizations like NLIHC to amplify their messages.