As the fiscal year 2024 appropriations cycle continues, the Senate Committee on Appropriations on June 22 adopted fiscal year 2024 (FY24) allocations for each of its 12 subcommittees. The Senate’s allocations reflect the spending caps agreed to in the debt ceiling negotiations, while the House allocations, adopted June 15, do not and are much lower. 

For the Transportation—Housing and Urban Development (THUD) Subcommittee, the Senate allocation provides $88.091 billion for FY24—35.1% more than the House THUD Subcommittee allocation of $65.2 billion, which, as explained in this June 16, 2023 post, is 26% below the final  FY22 THUD Subcommittee allocation of $88.6 billion. 

The Senate $88.091 billion THUD subcommittee allocation is $759 million more than the amount allocated and spent by THUD for FY23—in line with the debt ceiling deal, which allows for overall federal spending to be 1% more than FY23 levels. For the Senate’s THUD allocation, the $88.091 billion amount is 0.9% above the FY23-enacted THUD bill.

The proposed $88.091 billion THUD Subcommittee funding is still very low compared with housing program funding needs; after all, the costs incurred to operate HUD programs and maintain even the same number of assisted households rise more than 0.9% each year. 

Further complicating HUD’s FY24 funding outlook is a projected decline in revenues generated from the Federal Housing Administration’s (FHA) single family mortgage insurance product, which HUD usually contributes to help appropriators fund the HUD appropriations bill. As interest rates rose in 2022, revenues from FHA single family insurance products nose-dived,and the home purchasing and refinancing markets cooled. For FY24, appropriators will have access to $13 billion less in FHA receipts than they did in FY23.

Aging services stakeholders are urged to respond to the LeadingAge action alert for FY24 HUD funding.