White House 2024 budget request includes a modest HUD increase

Details on congressional justifications for FHA programs, including HECM, are forthcoming

On Thursday, the White House released President Biden’s proposed fiscal year 2024 budget for the federal government. While the average funding request is an increase of 7.3% for most government agencies (aside from the Department of Defense), the U.S. Department of Housing and Urban Development (HUD)’s FY 2024 request of $73.3 billion is only 1.6% higher than the figure for 2023, according to an analysis by Government Executive.

HUD Secretary Marcia Fudge said in a statement that the additional investment would emphasize economic growth by providing more services and assistance for working people.

HUD Secretary Marcia Fudge, who oversees the department that administrates the reverse mortgage program for the Biden administration.
Marcia Fudge

“The president’s 2024 Budget directly supports this historic administration’s goal of building a better America for all,” Fudge said. “For those of us at HUD, that means addressing homelessness with urgency and ensuring everyone in this country has access to quality affordable housing.”

The secretary did not mention seniors or Federal Housing Administration (FHA) lending programs in her statement, but instead focused on issues related to first-time homebuyers and renters.

“The budget invests in Americans at every station in life – from those seeking to purchase a home to those who receive HUD rental assistance – and will ensure families across the country can live in communities that are safe, affordable, and resilient,” she said.

Of other departments with a White House cabinet secretary, the Department of the Treasury is seeing the largest requested increase at $16.3 billion, up from $14.2 billion in 2023. That marks a requested increase of 15%.

The largest requested increase overall is for the Environmental Protection Agency (EPA), which is 19.2% above the 2023 funding level. However, the 2024 funding request is for $12.1 billion, a fraction of HUD’s 2023 enacted budget of $72.1 billion.

More detailed information regarding the specific program requests for HUD and FHA – including more details about its outlook for the Home Equity Conversion Mortgage (HECM) program and the Mutual Mortgage Insurance (MMI) Fund – will arrive in the coming days when HUD releases its Congressional Justifications document.

The likelihood is slim that the White House proposal will be broadly enacted. Republicans have taken control of the U.S. House of Representatives since the FY 2023 budget was put forward one year ago and have indicated resistance to potential increases in government spending.

Housing issues are generally less controversial than other elements of the budget request, however.

The White House requested $71.9 billion for HUD in the FY 2023 budget request, an increase of $11.6 billion compared to enacted levels for FY 2022. The actual 2023 enacted figure for HUD was $72.1 billion, slightly above the White House’s request, though the hurdles for passage were lower due to Democratic control of both chambers.

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