Federal Stopgap Bill Maintains Funding for Federal Programs Despite Cost Increases

On September 30, President Biden signed a continuing resolution (CR) that extends funding for the Federal government until December 20, setting up a spending fight in December. The CR ensures that the Federal government will continue operating when the new fiscal year begins. However, the CR maintains current levels of funding for programs even though the cost of housing and homelessness programs rises every year. As such, it is imperative that Congress enact a final FY 25 spending bill with increased funding for housing and homelessness programs.

Both Senate and Housing spending proposals for FY 25 were released earlier this year, with the House bill proposing an overall cut to HUD Programs of $2.3B (3% of funding provided in FY24) and the Senate bill providing an increase of $8.2B (or more than 10% over FY24 levels). With the new continuing resolution, Congress will need to negotiate, draft, and pass a final Transportation, Housing and Urban Development (THUD) by December 20, alongside the other 11 annual spending bills.