In the first Senate appropriations markup in two years, the Senate Appropriations Committee approved on June 22 topline funding allocations – known as 302(b) numbers – for all 12 fiscal year (FY) 2024 appropriations bills, providing $88.091 billion for the Transportation, Housing, and Urban Development (THUD) bill. The THUD bill provides funding for both vital HUD and Department of Transportation (DOT) programs. While the FY24 302(b) represents a $759 million increase for THUD over the previous year, that increase will be divided between HUD and DOT programs. This year, between the increased cost of rent, other inflationary pressures, and lower Federal Housing Administration (FHA) receipts, HUD alone is facing an expected budget shortfall of $15 billion.
The vote comes after Republicans on the House Appropriations Committee approved topline spending numbers for FY24 that would effectively cut next year’s federal spending to FY22 levels, totaling an estimated $131 billion in cuts. Under the House proposal, the THUD bill would be cut by more than $22.12 billion (25%) from FY23 enacted levels (see Memo, 6/20).
Committee Chair Patty Murray (D-WA) made clear that she and her colleagues on the committee are committed to enacting FY24 spending bills through regular order, writing them to the levels agreed upon under the constraints of the debt ceiling agreement. Chair Murray also emphasized, however, that committee members on both sides of the aisle are concerned about the challenging toplines mandated by the debt ceiling agreement. “I’m worried about how it will limit our ability to make necessary investments in our country’s future, but we have a critical job as appropriators, and as members of Congress,” she said. “The programs that feed our families, and keep people housed, and support childcare centers in our country are critical.”
Vice Chair Susan Collins (R-ME) and her Republican colleagues all voted against the topline funding levels, citing concerns about the impact of funding caps on defense programs. “Due to the inadequacy of funding for Homeland Security, and the need for additional defense funding, I cannot support the proposed 302(b) allocations,” stated Vice Chair Collins. “The proposed 302(b)s before us today are not the final story for the fiscal year,” Vice Chair Collins continued. “I hope in the weeks ahead we will be able to reach an agreement to ensure our military and Department of Homeland Security have the resources they need to keep our country safe.”
Chair Murray suggested the committee may consider a supplemental appropriations package in the future. “Just as we do every year, we can and will consider supplemental appropriations to address key challenges,” she said. “As this process moves forward, I am going to insist that the programs families rely on every day get the same kind of attention and urgency as the Pentagon.”
The Senate FY24 appropriations bill will certainly represent the high watermark in negotiations over a final spending package, which will likely still be woefully inadequate for HUD programs. The House Republican’s proposal would bring even more devastating consequences to communities across the country.
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 one 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 impacted by the austere spending caps put in place by the Budget Control Act of 2011; HUD’s cumulative appropriations since FY10 are still lower than if annual appropriations had remained at FY10 levels adjusted only for inflation.
We cannot afford to take a step backward. Advocates should call, email, and Tweet their members of Congress, urging 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 more than 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, urging them to increase – not cut – resources for affordable housing and homelessness in FY24, and to support NLIHC’s top appropriations priorities:
- Implement full funding for the Tenant-Based Rental Assistance (TBRA) program to renew all existing contracts.
- Provide full funding for public housing operations and repairs.
- Fully fund homelessness assistance grants.
- Provide $100 million for legal assistance to prevent evictions.
- Fund a permanent Emergency Rental Assistance program.
- Maintain 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.