President Joe Biden and HUD Secretary Marcia Fudge released the FY25 budget request proposing $72.6 billion for affordable housing and homelessness programs, maintaining level funding compared to FY24. This budget, shaped by the “Fiscal Responsibility Act of 2023” with a 1% spending increase cap, was developed before Congress finalized the FY24 spending bill. It includes $258 billion in mandatory spending for affordable housing, though significant advancement in a divided Congress is unlikely. The budget proposes increased funding for Housing Choice Vouchers to $32.8 billion and Project-Based Rental Assistance to $16.7 billion, but advocates warn this may not cover all housing vouchers, necessitating potential additional funding. Other programs receiving modest increases include Homeless Assistance Grants ($4.06 billion), Section 202 Housing for the Elderly ($931 million), Section 811 Housing for Persons with Disabilities ($257 million), Choice Neighborhoods ($140 million), Policy Development & Research ($145.5 million), and Healthy Homes ($350 million), while some programs maintain level funding. Public Housing, Tribal housing, and Community Development Block Grants face cuts, with significant reductions in the Public Housing Capital Fund ($3.31 billion) and Operating Fund ($5.23 billion). The budget aims to expand and reform the Low-Income Housing Tax Credit, enact the “Neighborhood Homes Investment Act,” and invest $20 billion in a competitive innovation fund for rental homes and zoning reform. It also proposes $8 billion for homelessness strategies, $3 billion for emergency rental assistance, and steps to protect renters from unfair practices. Congress must finalize the FY25 appropriations by October 1 to avoid a government shutdown.

https://nlihc.org/resource/biden-administration-releases-fy25-budget-request