Administration Releases FY 2025 President’s Budget for HUD 

Today, the White House released the Fiscal Year (FY) 2025 President’s budget proposal for the U.S. Department of Housing and Urban Development (HUD). The President’s budget proposal for HUD requests $72.6 billion in discretionary spending with another $185 billion in mandatory spending over 10 years. According to the administration this is $258 billion in new funding authority, which will provide rental assistance, among other things, to 4.5 million families.

Topline account funding levels from the President’s FY 2025 proposed budget include the following (comparisons are to FY 24 enacted levels):  

Discretionary Spending

Section 8

• Voucher renewal funding (Housing Assistance Payments) – $29,251 million ($760 million increase)
• Administrative Fees – $2,964 million ($193 million decrease)
• Tenant Protection Vouchers – $300 million ($37 million decrease)
• Project-Based Rental Assistance (PBRA) – $16,686 ($676 million increase)
• New general-purpose vouchers – $241 million ($241 million increase)

Public Housing

• Operating Fund – $5,050 million ($426 million decrease)
• Operating Fund Shortfall – $178 million (153 million increase)
• Capital Fund – $3,200 million (level funding)

Community Development

• HOME – $1,250 million (level funding)
• CDBG – $2,845 million ($455 million decrease)
• Homeless Assistance Grants – $4,060 million ($9 million increase)
• Choice Neighborhoods – $140 million ($65 million increase)

Mandatory Spending

Section 8

• Housing vouchers for veterans with extremely low incomes – $13,000 million
• Housing vouchers for youth aging out of foster care – $9,000 million
• New Project-Based Rental Assistance contracts – $7,500 million

Public Housing

• Modernization of Public Housing – $7,500 million

Community Development

• First-Generation Homebuyer Down Payment Assistance – $10,000 million
• Homelessness Grants – $8,000 million
• Emergency Rental Assistance for Older Adults at Risk of Homelessness – $3,000 million

The President’s budget has consolidated the mainstream voucher renewals account into the general Housing Assistance Payments (HAP) account. Additionally, the budget provides language to reallocate authorized voucher units and offset programs “with a history of significant under-leasing.” The budget also states that it assumes that PHAs use $963 million from reserves to help fully fund renewals. NAHRO is deeply concerned that the budget relies on the use of PHA reserve accounts through offsets to fully fund voucher renewals. Finally, while the mandatory spending amounts are important additions, realistically, they are unlikely to make it into a final budget passed by Congress for FY 2025.

The numbers presented above are a sample of accounts that NAHRO members will be interested in and do not represent a comprehensive overview of the proposed budget. NAHRO will provide additional in-depth pieces as the week progresses.

NAHRO’s advocacy will be crucial for funding affordable housing and community development programs. The President’s budget kickstarts FY 25 negotiations on Capitol Hill. With a competitive general election season also underway, we know that this year will also present challenges to the delivery of on-time and adequate HUD funding from Congress. Stay tuned for opportunities to advocate for FY 25 funding with NAHRO.