With FY23 Budget Finalized, New Congressional Session Begins

Members of the U.S. House of Representatives and Senate passed a final fiscal year (FY) 2023 omnibus spending bill on December 23, 2022 that includes significant funding for HUD’s housing and homelessness programs. The final spending bill provides HUD programs with $61.8 billion, or $8.1 billion more than FY22-enacted levels, and includes significant funding for NLIHC’s top priorities. The final bill provides approximately $754 million more than the amount proposed in the Senate draft, but nearly $1 billion less than the amount provided in the House proposal. For more details on the FY23 spending bill, see NLIHC’s full analysis and our updated budget chart.

With the FY23 budget enacted, the new congressional session began on January 3 without the added pressure of needing to wrap up an overdue spending bill. However, the start of the 118th Congress has still been marred with drama, as House Republicans struggle to elect a new Speaker of the House. Representative Kevin McCarthy (R-CA), the presumptive Speaker, is fighting to garner the 218 votes needed to secure the position; with a very narrow majority in the House, Rep. McCarthy can only afford to lose four Republican votes, but so far as many as 20 of his Republican colleagues have refused to cast their vote for him to wield the Speaker’s gavel. The House cannot begin its work and new members cannot be sworn in until the Speaker is elected.

Rep. McCarthy’s election is being held up largely by members of the far-right House Freedom Caucus, a group of ultra-conservative lawmakers who are squeezing Rep. McCarthy for concessions in exchange for their votes. These concessions include changes to the House’s appropriations process that would make it easier to attach potentially harmful amendments to an omnibus spending bill and that would slash funding for vital domestic programs.

The chaos in the House foreshadows what will likely be a very tumultuous year in Congress. With Republicans taking control of the House and Democrats maintaining their hold on the Senate, passing legislation through both chambers will require bipartisan cooperation. Moreover, House Freedom Caucus members are already pushing for a potential shutdown later in the year, when Congress will be charged with enacting a new federal budget for FY24 and raising the debt ceiling to avoid a potential financial catastrophe.

The Continuing Need for Resources

Even with the meaningful increases in the FY23 spending bill, far more resources are needed to address the nation’s growing affordable housing and homelessness crises. There is a national shortage of approximately 7 million affordable, available homes for people with the lowest incomes, and only one in four households who qualify for federal housing assistance receive the help they need. Without adequate federal funding for these vital resources, households with the lowest incomes will continue to live precariously, only one missed paycheck or unexpected emergency away from housing instability, eviction, and, in the worst cases, homelessness.

NLIHC and our members, partners, and allies will continue working with affordable housing champions in Congress to ensure everyone has a safe, affordable, accessible place to call home. Visit our Take Action page to learn about ways you can get involved!

Thank you for your advocacy!