Introduction

This report provides a brief overview of the President's FY2024 budget request for the Department of Housing and Urban Development (HUD). It links to relevant Administration budget documents and Congressional Research Service (CRS) reports.

This report will not be updated to track legislative action during the appropriations process.

Department of Housing and Urban Development

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 more information about HUD's programs and activities, see CRS Report RL34591, Overview of Federal Housing Assistance Programs and Policy, by Maggie McCarty, Libby Perl, and Katie Jones.

President's FY2024 HUD Budget Request

On March 9, 2023, the Biden Administration submitted its FY2024 budget request to Congress.

• For more information about HUD's budget request, see FY2024 Budget Appendix-HUD.
• For additional detail about funding levels for specific programs and activities, see HUD's FY2024 Congressional Budget Justifications.
• For a comparison of FY2024 requested funding levels and FY2023 enacted funding levels for selected HUD accounts, see Table 1.

Gross Budget Authority

The President's FY2024 budget request proposes $73.3 billion in gross discretionary appropriations for HUD, which would be the amount of new funding, or budget authority, available for HUD programs and activities, not accounting for budgetary savings from offsets and other sources. This amount is about $1.1 billion (2%) more than the $72.2 billion in gross discretionary appropriations provided in the Consolidated Appropriations Act, 2023 (P.L. 117-328) (Figure 1).¹

Several accounts are slated for funding increases in the President's FY2024 budget. The largest relative increase is for the HOME Investment Partnerships program (+20%; +$300 million relative to FY2023), and the largest overall increase is for the tenant-based rental assistance account, which funds the Section 8 Housing Choice Voucher program (+$2.4 billion; +8% relative to FY2023).

Net Budget Authority

When looking at net discretionary budget authority—accounting for the effect of budgetary savings from offsetting collections and receipts, rescissions, and other sources and also excluding all emergency-designated spending—the President's FY2024 budget request would provide a larger increase relative to FY2023 than the increase in gross budget authority. As shown in Figure 1, accounting for these savings, the President's FY2024 budget requests $67.8 billion in net discretionary funding for HUD, an increase of about $9.6 billion (17%) compared to the net budget authority provided in FY2023.² 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

The net increase from FY2023 enacted to FY2024 requested amounts is larger than the gross increase, in part, because available offsets are estimated to be less in FY2024 than in FY2023. Specifically, there is an estimated $4.9 billion (47%) decrease in budget savings, from $10.4 billion in FY2023 to $5.5 billion in FY2024.³ This decrease is largely attributable to projected declines in offsetting receipts from mortgages insured by the Federal Housing Administration (FHA) in FY2024 relative to FY2023. Please note that these estimates of offsetting collections and receipts for FY2024 will likely change when the Congressional Budget Office re-estimates the President's budget for the purposes of the congressional appropriations process.

• 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.

Figure 1. Total HUD Discretionary Funding With and Without Savings from Offsets and Other Sources: FY2023 Enacted and FY2024 Request

Source: Chart prepared by the Congressional Research Service (CRS). FY2023 and FY2024 figures taken from FY2024 President's budget documents, the Department of Housing and Urban Development (HUD) Congressional Budget Justifications, and the Consolidated Appropriations Act, 2023 (P.L. 117-328).

Funding Increases

The majority of HUD programs are proposed for funding increases in the FY2024 request relative to FY2023 enacted appropriations. Those with the largest proposed dollar increases include the following:

• Tenant-Based Rental Assistance (Section 8 Housing Choice Vouchers), proposed for a $2.5 billion (8%) increase, provides funds to private landlords on behalf of low-income households. Of this amount, $565 million is to fund new incremental vouchers.
• Project-Based Rental Assistance (Project-Based Section 8), proposed for a $996 million (7%) increase, funds long-term rental assistance contracts with owners of project-based Section 8 properties.
• Public Housing Fund, proposed for a $379 million (4%) increase, provides grants to public housing agencies to fund public housing costs.
• HOME Investment Partnerships Program, proposed for a $300 million (20%) increase, provides formula grants to states and eligible localities for various affordable housing activities targeted to low-income households. This amount includes a $100 million set-aside for the FirstHOME down payment assistance initiative.
• Salaries and Expenses, proposed for a $128 million (7%) increase, which funds HUD program administration and staffing.
• Homeless Assistance Grants, proposed for a $116 million (3%) increase, provide funds to local communities for a variety of housing and related services for individuals and families experiencing or at risk of homelessness.

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 prevention policies. In FY2024, this includes $10 billion for down payment assistance, $7.5 billion for public housing, $7.5 billion for project-based rental assistance, $3 billion for eviction prevention, and $1.2 billion in grants to remove barriers to affordable housing.

Funding Reductions

A few HUD programs are slated for funding reductions in the FY2024 request relative to FY2023 enacted appropriations. Programs that are proposed for reductions include the following:

• Choice Neighborhoods grants, proposed for a $165 million (47%) reduction relative to FY2023, provide competitive grants to revitalize distressed public housing or other HUD assisted housing.
• Housing for the Elderly, proposed for a $52 million (5%) reduction relative to FY2023, provides grants and project-based assistance to support the development of low-income housing for elderly households.
• Housing for Persons with Disabilities, proposed for a $4 million (1%) reduction relative to FY2023, provides competitive grants to support the development of low-income housing for persons with disabilities and their families.