After a two-week recess, Congress is back in session this week with a to-do list focused primarily on moving the fiscal year (FY) 2024 appropriations process forward. FY24 negotiations are ongoing after Congress passed and President Joe Biden signed into law in May an agreement to lift the federal debt ceiling in exchange for capping FY24 domestic spending at roughly FY23 levels and allowing a mere 1% growth in FY25, among other harmful provisions (see Memo, 6/5).
Despite the agreement, House and Senate appropriators remain far apart on FY24 funding. Sticking to the terms outlined in the debt ceiling agreement, Senate Appropriations Chair Patty Murray (D-WA) and Vice Chair Susan Collins (R-ME) provided a topline funding allocation of $88.091 billion for the Senate Transportation, Housing, and Urban Development (THUD) spending bill – a roughly $759 million increase for THUD over the previous year. However, facing pressure from the far-right contingency in her party, House Appropriations Chair Kay Granger (R-TX) provided topline funding numbers that would effectively slash FY24 spending to FY22 levels, resulting in an approximately $131 billion cut to domestic spending. If enacted, the House topline allocation would cut an estimated $22.12 billion, or 25%, from the THUD budget.
While the timeline for moving the bills in both chambers is still up in the air, both the House and Senate are expected to release draft budgets in the coming weeks. The Senate is aiming to review and pass all 12 spending bills out of the appropriations committee before Congress adjourns for August recess.
The Senate FY24 appropriations bill will certainly represent the high-water mark in negotiations over a final spending package but will still likely be woefully inadequate when it comes to funding HUD programs. While the Senate’s FY24 302(b) represents a $759 million increase for THUD over the previous year, that $759 million increase will be divided between HUD and DOT programs. Moreover, this year, between the increased costs of rent, inflation, and lower FHA receipts, HUD alone is facing an expected budget shortfall of up to $15 billion. House Republicans’ proposal would bring about even more devastating consequences for communities across the country.
The proposal to slash funding for HUD’s vital affordable housing and community development programs comes at a time of increased financial hardship for people and families around the country that has in turn led to increased rates of eviction, housing instability, and homelessness, particularly among people and families with the lowest incomes.
In a statement, NLIHC’s President and CEO Diane Yentel emphasized the “profound hardship” the proposed cuts would bring to people with the lowest incomes: “If enacted, over 1 million households would lose their rental assistance. Additionally, over 24,000 fewer people experiencing homelessness would receive services needed to find and maintain stable housing; and the country’s already dire shortage of 7.3 million affordable, available units for extremely low-income renters would continue to grow. According to HUD Secretary Marcia Fudge, such extreme funding cuts would make it impossible for HUD to stave off mass evictions.”
Take Action!
Failure to increase appropriations for HUD’s vital affordable housing and homelessness assistance programs would have a devastating impact on the people and communities served by these programs. Even with recent funding increases to federal programs, many are still being impacted by the austere spending caps put in place by the “Budget Control Act of 2011.” In fact, HUD’s cumulative appropriations since FY10 are still lower than if annual appropriations had remained at FY10 levels and been adjusted only for inflation.
We cannot afford to take a step backwards. Advocates should call, email, and Tweet their members of Congress and urge them to reject spending cuts and instead provide the highest possible allocation for HUD’s and USDA’s affordable housing, homelessness, and community development programs in FY24.
Take action today by:
- Signing your organization on to CHCDF’s annual budget letter – join over 2,000 organizations from around the country on CHCDF’s annual 302(b) letter calling on Congress to reject spending cuts and instead provide the highest possible allocation for HUD’s and USDA’s affordable housing, homelessness, and community development programs in FY24.
- Emailing your members of Congress today and urging them to increase – not cut – resources for affordable housing and homelessness in FY24 and to support NLIHC’s top appropriations priorities:
- Implementing full funding for the Tenant-Based Rental Assistance (TBRA) program to renew all existing contracts.
- Providing full funding for public housing operations and repairs.
- Fully funding homelessness assistance grants.
- Providing $100 million for legal assistance to prevent evictions.
- Funding a permanent Emergency Rental Assistance program.
- Maintaining funding for competitive tribal housing grants for tribes with the greatest needs
- Checking out NLIHC’s advocacy toolkit, “Oppose Dramatic Cuts to Federal Investments in Affordable Housing,” for talking points, sample social media messages, and more!
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One way to support NLIHC and this work is by becoming an NLIHC member. NLIHC membership is open to individuals, organizations, corporations, and government agencies, and annual membership dues are suggested amounts, meaning you can join at any amount that works for you.
You can join easily online at nlihc.org/membership or contact [email protected] with any questions.