President Joe Biden's fiscal year (FY) 2025 budget proposal allocates $258 billion to housing initiatives, aiming to tackle the challenges of high mortgage, home, and rent prices.
The centerpiece of the plan is a one-year tax credit of up to $10,000 for first-time homebuyers and owners selling their starter homes, which would help put more affordable homes on the market during the ongoing supply shortage.
Other key reforms in the 2025 budget include:
- Down payment assistance for first-generation homebuyers
- A new $20 billion grant fund to support “innovative” rental construction projects
- Increased funding for several HUD programs, such as Homelessness Assistance Grants, Project-Based Rental Assistance, and Housing Choice Vouchers
These proposals build upon previous federal actions aimed at making housing more affordable, including efforts to fight alleged algorithmic price fixing and eliminate so-called “junk fees” in rental housing.
Congress still has to review and vote on the budget, and these initiatives may evolve before they are approved based on final federal spending levels. This could take some time, as Congress had only completed half of the annual appropriations process for the FY 2024 budget a few days before the 2025 budget release (just hours before a partial government shutdown).
More housing policy headlines
Majority of Americans express strong support for zoning reforms – PayProp
Missouri House passes bill to block eviction moratoriums – Kansas City Star
US Housing Secretary Marcia Fudge will step down this month – NPR
