Department of Housing and Urban Development (HUD): FY2025 Budget Request Fact Sheet

Department of Housing and Urban Development (HUD): FY2025 Budget Request Fact Sheet

Department of Housing and Urban
Development (HUD): FY2025 Budget Request
Fact Sheet
April 3, 2024
Congressional Research Service
https://crsreports.congress.gov
R47999

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Housing and Urban Development (HUD): FY2025 Budget Request

Contents
Introduction ..................................................................................................................................... 1
President’s FY2025 HUD Budget Request ..................................................................................... 1
Gross Budget Authority ............................................................................................................. 1
Net Budget Authority ................................................................................................................ 2
Offsetting Receipts .................................................................................................................... 2
Proposed Funding Increases ...................................................................................................... 3
Proposed New Mandatory Funding........................................................................................... 3
Proposed Funding Reductions ................................................................................................... 4

Figures
Figure 1. Total HUD Discretionary Funding With and Without Savings from Offsets and
Other Sources: FY2024 Enacted and FY2025 Request ............................................................... 3

Tables
Table 1. FY2024 Enacted Funding and FY2025 Request: Select HUD Accounts .......................... 4

Contacts
Author Information .......................................................................................................................... 5

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Introduction
This report provides a brief overview of the President’s FY2025 budget request for the
Department of Housing and Urban Development (HUD). It links to relevant Administration
budget documents and Congressional Research Service (CRS) reports.
Most funding for HUD programs and activities comes from discretionary appropriations provided
each year through annual appropriations acts. The House and the Senate appropriations
committees’ Transportation, HUD, and Related Agencies subcommittees generally consider
HUD’s annual appropriations along with those for the Department of Transportation and several
related agencies (including the Neighborhood Reinvestment Corporation, also known as
NeighborWorks America and the Interagency Council on Homelessness).
• For additional information on HUD programs and activities, see CRS Report
RL34591, Overview of Federal Housing Assistance Programs and Policy, by
Maggie McCarty, Libby Perl, and Katie Jones.
This report will not be updated to track legislative action during the appropriations process.
President’s FY2025 HUD Budget Request
On March 11, 2024, the Biden Administration submitted its FY2025 budget request to Congress.
The budget request was released shortly after the enactment of the Consolidated Appropriations
Act, 2024 (P.L. 118-42) on March 9, 2024, which included FY2024 HUD appropriations.
• For additional information on HUD’s budget request, see FY2025 Budget
Appendix-HUD.
• For additional details on requested funding levels for specific programs and
activities, see HUD’s FY2025 Congressional Budget Justifications.
• For a comparison of FY2025 requested funding levels and FY2024 enacted
funding levels for select HUD accounts, see Table 1.
Because the President’s budget documents were likely prepared prior to the enactment of the
Consolidated Appropriations Act, 2024, funding levels presented in those documents do not
reflect enacted FY2024 funding levels. This report uses FY2024 enacted funding levels as
contained in the Consolidated Appropriations Act, 2024.
Gross Budget Authority
The President’s FY2025 budget request proposes $72.6 billion in gross discretionary
appropriations for HUD, which is about $4.9 billion (7%) more than the $67.7 billion in
nonemergency funding provided in the Consolidated Appropriations Act, 2024. Accounting for $8
billion in emergency funding for regular program operations provided in FY2024, the FY2025
request would represent a funding decrease of about $3 billion (4%). Gross appropriations
represent the amount of new funding, or budget authority, available for HUD programs and
activities, not accounting for budgetary savings from offsets or other savings.
Several accounts are slated for funding increases in the FY2025 President’s budget request. The
largest relative increase is for the Choice Neighborhoods program (+87%; +$65 million relative
to FY2024), and the largest overall increase is for salaries and expenses (+$685 million; +38%),
which is part of the Administration and Management account.
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Net Budget Authority
Net discretionary budget authority accounts for the effect of budgetary savings from offsetting
collections and receipts, rescissions, and other sources. It also excludes all emergency-designated
spending. As shown in Figure 1, after accounting for budgetary savings, the President’s FY2025
budget requests $65.9 billion in net discretionary funding for HUD, an increase of about $3.9
billion (6%) compared to the nonemergency net budget authority provided in FY2024. This is a
smaller increase relative to FY2024 than the increase in nonemergency gross budget authority.
The gross budget authority generally best reflects the amount of new funding available for HUD’s
programs and activities in a year, whereas net budget authority is important for budgetary
scorekeeping and compliance with statutory spending limitations.
Offsetting Receipts
Available offsets, as estimated by OMB, are greater in FY2025 than in FY2024. There is an
estimated $1.2 billion (22%) increase in budget savings available from offsetting collections and
receipts for FY2025 relative to FY2024. This is largely attributable to projected increases in
offsetting receipts from mortgages insured by the Federal Housing Administration (FHA) in
FY2025 relative to FY2024. These estimates of offsetting collections and receipts for FY2025
may change when the Congressional Budget Office re-estimates the President’s budget for the
purposes of the congressional appropriations process. (Typically, congressional appropriators use
CBO’s estimates of offsetting receipts for budget enforcement purposes, although in FY2024 the
House and Senate Budget Committees directed CBO to use the Administration’ s estimates of
FHA receipts in lieu of the CBO estimates.)
• For more information about offsetting collections and receipts and other
components of the HUD budget, see CRS Report R42542, Department of
Housing and Urban Development (HUD): Funding Trends Since FY2002, by
Maggie McCarty.
• For more information about FHA and how it is accounted for in the budget, see
CRS Report R42875, FHA Single-Family Mortgage Insurance: Financial Status
of the Mutual Mortgage Insurance Fund (MMI Fund), by Katie Jones.
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Figure 1. Total HUD Discretionary Funding With and Without Savings from Offsets
and Other Sources: FY2024 Enacted and FY2025 Request

Source: Chart prepared by the Congressional Research Service (CRS). FY2024 and FY2025 figures taken from
FY2025 President’s budget documents, the Department of Housing and Urban Development (HUD)
Congressional Budget Justifications, and the Consolidated Appropriations Act, 2024 (P.L. 118-42).
Proposed Funding Increases
Several HUD program accounts are proposed for funding increases in the FY2025 request
relative to FY2024 enacted appropriations. Those with the largest proposed dollar increases
include the following:
• Project-Based Rental Assistance (Project-Based Section 8), proposed for a
$676 million (4%) increase, funds long-term rental assistance contracts with
owners of project-based Section 8 properties.
• Tenant-Based Rental Assistance (Section 8 Housing Choice Vouchers),
proposed for a $369 million (1%) increase, provides funds to private landlords on
behalf of low-income households.
• Choice Neighborhoods grants, proposed for a $65 million (87%) increase,
provide competitive grants to revitalize distressed public housing or other HUD
assisted housing.
• Lead Hazard Reduction grants, proposed for a $54 million (18%) increase,
provide funds to localities for lead-based paint hazard testing and remediation.
Proposed New Mandatory Funding
In addition to discretionary funding requests, the President’s budget requests new mandatory
appropriations to address affordable housing supply, expand access to homeownership and
affordable rental housing, and improve eviction and homelessness prevention policies. In
FY2025, among other things, this includes $10 billion for down payment assistance, $7.5 billion
for public housing, $7.5 billion for project-based rental assistance, $4 billion for housing supply
expansion innovation projects, and $3 billion for eviction prevention policy development. These
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proposed mandatory funds are being requested outside of the annual discretionary appropriations
process and would require additional legislative activity.
Proposed Funding Reductions
A few HUD accounts are slated for funding reductions in the FY2025 budget request relative to
FY2024 enacted appropriations. Programs that are proposed for reductions include the following:
• Native American Programs, proposed for a $291 million (22%) reduction
relative to FY2024, provide grants to Native American tribes and Alaska Native
Villages for affordable housing activities in tribal areas.
• Community Development Fund (including the Community Development Block
Grant [CDBG]), proposed for a $500 million (15%) reduction relative to
FY2024, after accounting for earmarks, provides formula grants to states and
localities for a variety of community and economic development activities. The
source of this proposed reduction is the CDBG program account.
• Self-Sufficiency Programs, proposed for a $21 million (11%) reduction relative
to FY2024, provide supportive services to HUD-assisted households to improve
economic and housing stability.
• Self-Help Homeownership Opportunity Program (SHOP), proposed for a $5
million (8%) reduction relative to FY2024, provides grants to national and
regional intermediaries (such as Habitat for Humanity) to support self-help,
sweat-equity model housing programs for low-income families, and grants for
capacity building activities.
• Public Housing Fund, proposed for a $271 million (3%) reduction relative to
FY2024, provides grants to public housing agencies to fund public housing costs.
Table 1. FY2024 Enacted Funding and FY2025 Request: Select HUD Accounts
(in billions of dollars)
%
Change,
FY2024-
FY2024
FY2025
FY2025
Accounts
Enacted Request Request
Tenant-Based Rental Assistance (Section 8 Housing Choice Vouchers)
32.387a
32.756
1%
Public Housing Fund
8.811
8.540
-3%
Choice Neighborhoods
0.075
0.140
87%
Self Sufficiency Programs
0.196
0.175
-11%
Native American Programs
1.344
1.053
-22%
Native Hawaiian block grant
0.022
0.022
0%
Housing, persons with AIDS (HOPWA)
0.505
0.505
0%
Community Development Fund (Including CDBG)b
6.720
2.930
-56%
HOME Investment Partnerships
1.250
1.250
0%
Self-Help Homeownership (SHOP)
0.060
0.055
-8%
Homeless Assistance Grants
4.051
4.060
0%
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%
Change,
FY2024-
FY2024
FY2025
FY2025
Accounts
Enacted Request Request
Project-Based Rental Assistance (Project-Based Section 8)
16.010c
16.686
4%
Housing for the Elderly
0.913
0.931
2%
Housing for Persons with Disabilities
0.208
0.257
24%
Housing Counseling Assistance
0.058
0.058
0%
Research and technology
0.139
0.156
12%
Fair housing activities
0.086
0.086
0%
Lead Hazard Reduction
0.296
0.350d
18%
Source: Table prepared by CRS. FY2024 and FY2025 figures taken from FY2025 President’s budget documents,
HUD Congressional Budget Justifications, and the Consolidated Appropriations Act, 2024 (P.L. 118-42).
Notes:
a. FY2024 Tenant-Based Rental Assistance appropriations include $6 bil ion in funding designated as an
emergency requirement.
b. FY2024 Community Development Fund appropriations include $3.3 bil ion in earmarks, also referred to as
Community Project Funding or Congressionally Directed Spending. The Administration does not typically
request funding for earmarks.
c. FY2024 Project-Based Rental Assistance appropriations include $2 bil ion in funding designated as an
emergency requirement.
d. The FY2025 budget request for Lead Hazard Reduction includes a $155 mil ion recission of prior year
funding that is not reflected in the program total shown here.

Author Information

Alyse N. Minter

Research Librarian

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Housing and Urban Development (HUD): FY2025 Budget Request

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
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