The U.S. Senate’s Committee on Appropriations’ Subcommittee on Transportation, Housing, and Urban Development (THUD) released on July 25 its draft spending bill for fiscal year (FY) 2025. Overall, the bill provides $78.2 billion for HUD’s affordable housing, homelessness, and community development programs, an increase of $8.2 billion – or more than 10% – over FY24-enacted levels. The funding includes $8.4 billion in offsetting receipts from the Federal Housing Administration (FHA).
The Senate proposal would provide $5 billion more than the overall funding level provided in the House’s FY25 proposal. For a comparison to funding levels enacted in FY24, proposed in President Biden’s budget request, and proposed in the House’s funding request, see NLIHC’s updated budget chart.
Senate Appropriations Committee Chair Patty Murray (D-WA) and Vice Chair Susan Collins (R-ME) reached a bipartisan agreement to provide funding above the austere 1% caps allowed under the Fiscal Responsibility Act of 2023 (FRA). According to the Chairs’ agreement, nondefense funding would receive an additional $13.5 billion in emergency funding beyond the FRA-allowed levels.
Thanks to this funding boost, and to the hard work and dedication of advocates across the country and our champions in Congress – including Chair Murray and Vice Chair Collins, THUD Subcommittee Chair Brian Schatz (D-HI) and Ranking Member Cindy Hyde-Smith (R-MS), and their staffs – the Senate THUD bill would provide increased funding for key HUD programs, particularly those responsible for getting or keeping people with the lowest incomes housed.
The bill proposes an increase to the Tenant-Based Rental Assistance (TBRA) program of $2.9 billion over the previous fiscal year, and $3 billion more than the funding proposed in the House THUD bill, for a total of $35.3 billion. The funding provided may be sufficient to cover the full cost of renewing existing TBRA voucher contracts and would provide funding for 3,000 new vouchers for youth aging out of foster care and veterans at risk of or experiencing homelessness.
The bill would also provide $4.3 billion to HUD’s Homeless Assistance Grants (HAG) program, a $268 million increase from the previous fiscal year, and $259 million more than the levels provided in the House proposal and in President Biden’s budget request. HAG funding is vital to connecting people experiencing homelessness with the resources and support they need to find and maintain safe, stable housing.
The bill would increase funding for the Native American Housing Block Grant program by $106 million, for a total of $1.2 billion in FY25, and maintain $150 million in funding for the competitive grant program. The Senate proposal would also maintain $20 million in funding for HUD’s Eviction Protection Grant Program (EPGP), which provides grants to communities to provide people at risk of eviction with access to legal assistance and other services to help them remain stably housed.
Both the Public Housing Capital Fund and Public Housing Operating Fund would receive cuts from the previous fiscal year, for total funding levels of $3.2 billion and $5.4 billion, respectively. The Senate bill would also provide $65 million for a competitive grant program to remediate residential health hazards in public housing.
Other important programs would receive increased funding in FY25, including Project-Based Rental Assistance (PBRA), the Choice Neighborhoods Initiative, Housing Opportunities for Persons with AIDS (HOPWA), the HOME Investment Partnership Program (HOME), and Section 202 Housing for the Elderly. Other programs, including the Native Hawaiian Housing Block Grant program, Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program, Housing Counseling Assistance, Fair Housing and Equal Opportunity program, and the Healthy Homes and Lead Hazards program, would receive level funding. Only a few HUD programs would be subject to funding cuts under the Senate’s proposal, including the Community Development Fund. However, cuts to the fund are proposed only in the Economic Development Initiative (EDI) account, better known as “congressional directed spending,” or “earmarks”; the formula grant program would receive level funding.
Beyond spending provisions, the Senate proposal does not include the harmful policy changes included in the House draft. The House bill included policy provisions that would limit HUD’s ability to use funds to implement, administer, or enforce the department’s own “Affirmatively Furthering Fair Housing” rule; bar appropriated funds from going to “sanctuary communities”; and eliminate the 30-day eviction notice requirement for HUD-assisted households, among other harmful provisions.
With both the Senate and House spending proposals for FY25 released, members will have until October 1 – the first day of FY25 – to negotiate, draft, and pass final appropriations bills. However, because of the potential impact of the elections in November, members are expected to pass instead a continuing resolution (CR) by October 1 to maintain funding for federal programs until after the elections, and possibly into the new year.
Take Action
The discrepancy between the House and Senate spending proposals for FY25 foreshadows what will likely be a contentious appropriations process. Congress needs to hear from you about the impact of HUD programs on you, your family, neighbors, and communities!
- Sign on to a national letter urging Congress to oppose budget cuts and instead to support the highest level of funding possible for affordable housing, homelessness, and community development resources in FY25. Nearly 2,300 organizations have already signed on to the letter from the Campaign for Housing and Community Development Funding (CHCDF).
- Urge your senators and representatives to expand – not cut – investments in affordable, accessible homes, including NLIHC’s top priorities:
- Full funding to renew all existing contracts for the Housing Choice Voucher (HCV) program and expand assistance to 20,000 more households.
- $6.2 billion for public housing operations and $5.2 billion for public housing capital needs.
- $4.7 billion for HUD’s Homeless Assistance Grants (HAG) program.
- $100 million for the Eviction Prevention Grant Program.
- At least $1.3 billion for Tribal housing programs, plus $150 million for competitive funds targeted to tribes with the greatest needs.
- Use NLIHC’s advocacy toolkit for talking points, sample social media messages, and more!
Detailed Analysis
Tenant-Based Rental Assistance
The Senate bill proposes increasing funding for HUD’s Tenant-Based Rental Assistance program (TBRA) by $2.9 billion above FY24-enacted levels, to a total of $35.3 billion. This funding is $3 billion above what was provided in the House bill and in the President’s FY25 budget request. It is expected that funding provided for TBRA contract renewals may be sufficient to cover all existing vouchers.
Because the cost of rent increases from year to year, it is crucial that TBRA receive sufficient funding increases every year to maintain the number of people served. Without sufficient increases, HUD would be unable to ensure all current TBRA contracts are fully renewed upon turnover, which would leave even more households without the assistance they need to keep a roof over their heads.
HUD’s Veterans Affairs Supporting Housing (VASH) program, which provides veterans at risk of or experiencing homelessness with rental assistance and supportive services when needed, would receive an additional $15 million for new vouchers. The Tribal-VASH program, which serves Native veterans, would receive an additional $7.5 million, level funding from the previous fiscal year but more than the level provided in the House proposal, which did not provide additional funding for new vouchers. HUD’s Family Unification Program (FUP), which provides housing assistance to youth aging out of foster care so they do not exit the system into homelessness, would receive $30 million for new vouchers. In total, the proposal would expand assistance to 3,000 additional households, targeted to young people aging out of the foster care system and veterans at risk of or experiencing homelessness.
While this voucher increase is welcome, the Section 811 Mainstream Voucher program would not receive additional vouchers in the Senate’s proposal, a decrease from the $743 million provided in FY24 and the $701 million proposed in the House’s FY25 budget. Additionally, the proposal does not reflect the President’s FY25 request for funding to expand the TBRA program to an additional 20,000 households.
Project-Based Rental Assistance
The Senate spending proposal would provide $16.6 billion to renew Project-Based Rental Assistance (PBRA) contracts, an increase of $644 million from FY24, and $59 million more than the funding provided in the House THUD budget and $32 million more than the President’s budget request. As with TBRA, increased funding is crucial to maintain those services provided to households in need; PBRA also helps finance the construction and operations of affordable housing units, so decreased funding would impact the construction of affordable housing.
Homelessness Assistance
The Senate calls for $4.3 billion for the Homeless Assistance Grants (HAG) program, a $268 million increase in funding from FY24-enacted levels, and $259 million more than the House proposal and the president’s budget request. This funding includes $100 million for the construction of new, permanent supportive housing for people experiencing homelessness, as well as $52 million for new rapid re-housing projects and supportive service projects for survivors of domestic violence, dating violence, sexual assault, or stalking.
HAG funds provide crucial assistance for communities to address the needs of people experiencing homelessness. With the dramatic increase in the number of people experiencing homelessness in communities across the country, and some local governments working to criminalize the experience of homelessness, more resources will be needed to sufficiently address the needs of unhoused neighbors, particularly when it comes to finding safe, affordable, accessible housing.
Public Housing
The spending bill would allocate $3.2 billion to address the dire capital needs in public housing, a $210 million decrease from the FY24 funding level and $112 million less than President Biden’s FY25 budget proposal, but $108 million more than the levels provided in the House’s budget. This assistance includes formula funding, plus $30 million for emergency capital needs and disaster-related repairs. In addition, the Senate bill would provide $65 million for a competitive Residential Health Hazards Grant Program, which public housing agencies (PHAs) would be able to use to remediate health hazards in public housing, including lead-based paint, carbon monoxide, mold, radon, and fire risk.
Due to chronic underfunding, the nation’s public housing stock is in a state of disrepair; an estimated $90 billion would be required to fully address the capital needs backlog in public housing.
The bill proposes $5.5 billion for public housing operating costs, a decrease of $28 million from FY24, but $245 million more than what was provided in the president’s request and $352 million more than what was proposed in the House draft. Operating support includes both formula funding and an additional $107 million, to be allocated based on need. In addition, the bill allocates $50 million to bolster HUD’s work conducting assisted housing inspections and risk assessments, including for training, travel, and program support.
Eviction Protection Grants
The Senate proposal maintains the $20 million in funding for HUD’s Eviction Protection Grant Program (EPGP) provided in the previous fiscal year. First authorized in 2021, EPGP provides communities with funding to ensure people facing eviction receive legal representation and other resources to help avoid eviction and keep people in their homes. The House zeroed out funding for the program in its budget request.
Native Housing
The Senate bill would allocate $1.2 billion for the Native American Housing Block Grant program, a $106 million increase from FY24 and $397 million more than the president’s budget request, but $5 million less than the House’s proposed funding level. The competitive tribal housing program, which is targeted to tribes based on need, would receive $150 million, level funding from FY24 and compared to the House’s and the president’s budget requests.
Other Housing and Community Development Programs
The Senate bill includes a $113 million increase to the Section 202 Housing for the Elderly program, which would bring total funding for the program to $1.04 billion – $115 million more than the funding provided in the House budget and the president’s budget request. This funding includes $115 million for service coordinators for residents and is expected to finance the construction of over 900 new units of affordable, supportive rental housing for older adults with low incomes.
The Senate’s proposal would provide $257 million for the Section 811 program, which supports affordable, accessible housing for people with disabilities – an increase of $49 million from FY24, and equal to the funding provided in both the president’s budget request and the House bill. Like other rental assistance programs, it is crucial that Section 202 and Section 811 receive increased funding every year to maintain the number of households and properties served by these vital programs.
The Senate would provide $3.3 billion for formula funding under the Community Development Block Grant (CDBG) program, level funding from FY24 and the House’s proposal, and $400 million more than what was provided in President Biden’s budget request. In addition, $1.2 billion is slated for “Economic Development Initiatives” better known as “earmarks,” which are spending requests submitted by members of Congress for specific projects in their states or districts. Earmarked funding is $989 million lower in the Senate’s proposal than in the House proposal, and $2.1 billion lower than in the final FY24 spending bill.
CDBG’s “Yes In My Back Yard” (YIMBY) competitive grant program would remain level from FY24, at $100 million; funding for the program was zeroed out in the House proposal. The YIMBY program was started in FY23 to encourage jurisdictions to adopt more inclusionary zoning practices and develop affordable housing in well-resourced areas of opportunity.
The Senate proposes to fund the HOME program at $1.4 billion, an increase of $175 million from the previous fiscal year, and $925 billion more than the funding provided in the House proposal. The Choice Neighborhoods Initiative program, which was cut by $275 million in FY24 and would not receive funding in the House bill, would receive $100 million in the Senate bill – an increase of $25 million from FY24, and $40 million less than the president’s FY25 budget request.
The bill would provide level funding at $10 million for the Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program, level funding from the previous fiscal year and the House’s draft budget. The PRICE program was first funded in FY23 to provide grants to preserve and vitalize manufactured housing communities.
Funding for the Housing Opportunities for People with AIDS (HOPWA) program would receive an increase of $19 million in the Senate bill, for a total of $524 million in FY25; the House bill provided the program with level funding from the previous fiscal year.
The Family Self-Sufficiency program would receive $145 million – a roughly $4 million increase from FY24, and over $20 million more than the funding provided in the House’s draft bill and the president’s budget request.
Healthy Homes
The Senate bill would provide $345 million for the Office of Lead Hazard Control and Healthy Homes grants, level funding from the previous fiscal year and $5 million less than the president’s budget request. The House bill proposes cutting funding for the program by $10 million, after the program was cut by $65 million the previous fiscal year.
Fair Housing
The Senate calls for funding HUD’s Office of Fair Housing and Equal Opportunity at $86.4 million in FY25, a slight increase from the previous fiscal year and what is proposed in the House budget.
U.S. Interagency Council on Homelessness
The bill proposes $4.3 million for the U.S. Interagency Council on Homelessness (USICH), which is responsible for coordinating the federal response to the needs of people experiencing homelessness. This would allocate slightly more than the $4 million provided for the agency in FY24, the House proposal, and president’s budget request.
Other Provisions
Beyond spending provisions, the Senate proposal does not include the harmful policy changes proposed in the House draft that would undermine equal access to housing, tenant protections, and efforts to curb climate change.
Before passing the bill out of committee, two amendments were added. The first, from Senator Bill Hagerty (R-TN), directs the HUD Secretary to brief the House and Senate Appropriations Committees on “strategic plans developed by the Department over the prior three fiscal years outlining ways for [HUD] to promote voter registration and voter participation.”
The second, from Senator Marco Rubio (R-FL), directs HUD to review existing guidance regarding the use of HAG funding for emergency shelters, and to “identify regulatory or statutory measures that may potentially undermine either the direct provision of supportive services, or the effective partnership with other Federal, State, or local stakeholders and service providers.”
LIHEAP
The Low-Income Home Energy Assistance Program (LIHEAP), funded in the spending bill for Labor, Health and Human Services (HHS), and the Department of Education, would receive $4.125 billion under the Senate's spending proposal. This is a $100 million increase over the previous year. LIHEAP provides financial assistance to households with low incomes to help heat and cool their homes, critical as summer temperatures reach record highs in communities across the country.