The U.S. Senate’s Committee on Appropriations’ Subcommittee on Transportation, Housing and Urban Development (THUD) released on July 20 its draft spending bill for fiscal year (FY) 2024. Overall, the bill provides $70.06 billion for HUD’s affordable housing, homelessness, and community development programs, an increase of $8.26 billion (or slightly more than 13%) over FY23-enacted levels. HUD needs to increase funding by approximately $13 billion just to maintain existing levels of assistance.
The Senate draft proposes $1.86 billion more in funding for HUD’s vital affordable housing and homelessness programs than the draft spending bill released by the U.S. House of Representatives on July 11. (Read NLIHC’s analysis of the House bill here. For further information, see NLIHC’s full analysis of the Senate bill and updated budget chart.)
Appropriations leaders in the Senate drafted their bills according to the austere topline funding caps provided under the “Fiscal Responsibility Act,” the agreement reached between President Biden and House Speaker Kevin McCarthy (R-CA) that allowed the federal debt ceiling to be raised. Under the terms of the deal, in exchange for raising the federal debt ceiling until 2025, FY24 spending will be capped at approximately FY23 levels, and a spending increase of only 1% will be allowed for domestic programs in FY25.
Despite these tight topline numbers, and thanks to the hard work and dedication of advocates across the country and our champions in Congress – including THUD Subcommittee Chair Brian Schatz (D-HI), Ranking Member Cindy Hyde-Smith (R-MS), Committee Chair Patty Murray (D-WA), and Vice-Chair Susan Collins (R-ME) – the Senate THUD bill proposes increased funding for key HUD programs, particularly those vital to getting or keeping people with the lowest incomes housed.
The bill proposes funding the Tenant-Based Rental Assistance (TBRA) and Project-Based Rental Assistance (PBRA) programs at levels expected to be sufficient to renew existing contracts and provides funding for an additional 4,000 vouchers targeted to veterans at risk of or experiencing homelessness and youth aging out of foster care.
The bill proposes an increase to HUD’s Homeless Assistance Grants (HAG) program, which is vital to connecting people experiencing homelessness with the resources and support they need to find and maintain safe, stable housing. The bill also increases funding for the Native American Housing Block Grant and Public Housing Operating Fund and preserves $20 million for legal assistance to prevent evictions – all NLIHC priorities.
Other important programs would receive increased funding, including Housing Opportunities for Persons with AIDS (HOPWA) and the recently authorized Grants to Identify and Remove Barriers to Affordable Housing program. Still other programs, including Tribal Housing Competitive funds, Native Hawaiian Block Grants, the HOME Investment Partnership Program (HOME), Section 202 Housing for the Elderly, Section 811 Housing for Persons with Disabilities, Housing Counseling Assistance, and fair housing programs, would receive level funding.
Only several HUD programs would be subject to funding cuts under the Senate’s proposal, including the Public Housing Capital Fund, Choice Neighborhoods Initiative, and the Healthy Homes and Lead Hazard program. The Community Development Fund would also face a cut, but only in congressionally directed spending (also known as “earmarks”).
The Senate bills represent the “high water mark” for appropriations funding in the coming fiscal year. While Senate appropriators wrote their bills according to the agreed-upon topline in the “Fiscal Responsibility Act,” House appropriators – caving to the demands of the far-right House Freedom Caucus – wrote their domestic spending bills to FY22 levels. While the House THUD bill proposes to cut funding drastically and even zero out funding for some HUD programs, it spares some key programs that get or keep the lowest-income people housed.
The discrepancy between House and Senate funding levels foreshadows what will likely be a contentious appropriations process when Congress returns from recess in September. Appropriators have until September 30 either to reach an agreement on spending bills for FY24 or to pass a continuing resolution (CR) to provide short-term funding to keep the federal government running. Failure to adopt one of these approaches would result in a government shutdown.
Take Action!
With the House and Senate bills released, appropriators will need to turn their attention to reaching a compromise funding bill with the bipartisan support that will be required for the bills to pass both chambers.
Thanks to the hard work of advocates across the country, who mobilized to weigh in with their elected officials, HUD’s vital rental assistance, homelessness assistance, and tribal housing program were spared from cuts in both the House and Senate bills. Yet advocates still have work to do to ensure these funding levels remain in a final bill and that other critical programs, such as Public Housing, are also fully funded.
Keep making your voice heard, and tell Congress that it cannot balance the federal budget at the expense of people with the lowest incomes! Advocates can take action TODAY in the following ways:
- Contact your senators and representatives to urge them to expand – not cut – investments in affordable, accessible homes through the FY24 spending bill!
- August recess is the perfect time for advocates to schedule in-district meetings with their members of Congress to urge them to support higher funding for affordable housing and homelessness programs. Check out NLIHC’s updated Congressional Recess Toolkit for information on how to set up in-district meetings, meeting tips, talking points, and more!
- Join over 2,000 organizations by signing on to a national letter from the Campaign for Housing and Community Development Funding (CHCDF), calling on Congress to oppose budget cuts and instead to support the highest level of funding possible for affordable housing, homelessness, and community development resources in FY24.