Senate Releases FY24 THUD Spending Bill Proposing Some Cuts but Overall Increases to Maintain Current Levels of Assistance Offered by HUD Programs

The U.S. Senate’s Committee on Appropriations’ Subcommittee on Transportation, Housing and Urban Development (THUD) Releases Draft Spending Bill for FY24

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.

Comparison with the House Bill

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 a comparison between FY23-enacted funding levels, the funding levels proposed in President Biden’s budget request, and the House’s funding request, see NLIHC’s updated budget chart.)

Spending Caps and Funding Increase

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 permitted for domestic programs in FY25.

Increased Funding for Key HUD Programs

Despite the 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 provides increased funding for key HUD programs, particularly those vital to getting or keeping people with the lowest incomes housed.

Funding Highlights

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
• The bill also increases funding for the Native American Housing Block Grant and Public Housing Operating Fund
• Preserves $20 million for legal assistance to prevent evictions

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. Others 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

Approval Process

The Senate Appropriations Committee released the draft THUD spending bill, held a meeting on the bill, and voted to approve it on the same day. Senate Appropriations Chair Patty Murray (D-WA) and Vice-Chair Susan Collins (R-ME) are aiming to ensure that all 12 spending bills for FY24 pass out of the committee before Congress adjourns for August recess.

Discrepancy between House and Senate Funding Levels

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.

Next Steps

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 pass a continuing resolution (CR) to provide short-term funding to keep the federal government running. Failure to take one of these approaches would result in a government shutdown.

Take Action!

Now that the House and Senate bills have both been released, appropriators will need to turn their attention to reaching a compromise funding bill with enough bipartisan support to pass both chambers.

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.

Detailed Analysis

Tenant-Based Rental Assistance

The Senate bill proposes increasing funding for HUD’s Tenant-Based Rental Assistance program (TBRA) by $1.48 billion above FY23-enacted levels, to a total of $31.7 billion, which is expected to be sufficient to ensure all existing TBRA contracts are fully renewed.

Project-Based Rental Assistance

The Senate spending proposal would provide $15.7

SDGs, Targets, and Indicators in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty
• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities
• SDG 16: Peace, Justice, and Strong Institutions
• SDG 17: Partnerships for the Goals

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 1.1: By 2030, eradicate extreme poverty for all people everywhere.
• Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all.
• Target 4.c: By 2030, substantially increase the supply of qualified teachers, including through international cooperation for teacher training in developing countries, especially least developed countries and small island developing States.
• Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance, and natural resources, in accordance with national laws.
• Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services.
• Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
• Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.
• Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all.
• Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions specific funding amounts and proposed increases or decreases for various HUD programs. These funding amounts can serve as indicators to measure progress towards the identified targets. For example:

• Indicator: Increase in funding for HUD’s affordable housing and homelessness programs
• Indicator: Funding levels for Tenant-Based Rental Assistance (TBRA) and Project-Based Rental Assistance (PBRA) programs
• Indicator: Funding for Homeless Assistance Grants (HAG) program
• Indicator: Funding for Public Housing capital needs and operating costs
• Indicator: Funding for the HOME Investment Partnerships program
• Indicator: Funding for Community Development Block Grants (CDBG) program
• Indicator: Funding for Fair Housing programs
• Indicator: Funding for Section 202 Housing for the Elderly and Section 811 Housing for People with Disabilities
• Indicator: Funding for Tribal Housing programs
• Indicator: Funding for Healthy Housing programs

Table: SDGs, Targets, and Indicators