Biden expands housing funding in the FY23 budget proposal

The Biden administration released the federal budget proposal for the fiscal year 2023. The budget calls to dedicate $71.9 billion in discretionary funding to housing and urban development, a 21 percent increase from last year’s enacted levels. 

The President’s budget increases funding of the Housing Choice Voucher program by $6.4 billion. The program helps low-income families to afford safe, privately-owned rental housing. According to the fiscal year 2023 budget, the increased funding will expand rental assistance to an additional 200,000 households that are at risk of homelessness. 

President Biden also requests $50 billion in grants and loans to increase the housing supply. Limited housing inventory continues to be one of the reasons why many Americans cannot afford to buy a home. The lack of supply leads to growing home prices.

The data released by Core Logic shows that home prices grew by almost 20 percent nationwide from January 2021 to January 2022. The new budget calls for a 34 percent increase in funding to create more affordable housing. The National Association of Realtors is among many housing groups and advocates that expressed support for Biden’s budget proposals. 

"This unprecedented investment demonstrates how seriously the White House views the supply crisis," Shannon McGahn, NAR's chief advocacy officer, said in the statement. "We worked with the administration and Congress over the past year on comprehensive policy proposals, and now a consensus is growing across Washington that decisive action is needed."

The budget increases funding for the HOME Investment Partnerships program by $600 million, bringing it to $2 billion in total. The program provides funds to build, buy and rehabilitate homes for low-income residents. In addition, the budget invests $180 million to build 2,000 affordable housing units for the elderly and people with disabilities.

Overall, the Biden administration unveiled several measures to tackle the affordability crisis. The proposal includes $3.6 billion for homeless assistance. The budget also provides $86 million in grants to support organizations that promote fair housing and work to prevent housing discrimination. The presidential budget will now move to Congress. 

Resources:

“Affordable housing funding would expand in Biden's FY23 budget,” by Danielle McLean (Smart Cities Dive, 2022)

“Budget of the U.S. Government Fiscal Year 2023,” (The White House, 2022)

“Breaking News: Biden Budget Targets Supply,” (National Association of Realtors, 2022)

“What the President’s Proposed FY23 Budget Means for Homelessness,” by Steve Berg (National Alliance to End Homelessness, 2022)

“White House unveils 2023 federal budget, calls for new spending aimed at reducing crime, unclogging supply chains and a tax on billionaires,” by Sarah Ewall-Wice (CBS News, 2022)

“There's never been such a severe shortage of homes in the U.S. Here's why,” by Chris Arnold (NPR, 2022)

“U.S. Home Price Insights,” by Economy Team (Core Logic, 2022)