The ability to maintain and expand crucial housing assistance programs is at a standstill as federal lawmakers fail to pass a final budget for the 2025 fiscal year.

Following the 2024 Election, power in Washington will change hands in Congress and the White House. With new members expected to be sworn in on January 3rd, lawmakers are working feverishly to decide on the trajectory of FY 2025 government funding. We are in a crucial moment as Congress decides between

• Passing the FY 2025 budget before the new Congress and new Administration is sworn in next month.
• Extending government funding through a Continuing Resolution (CR) that will maintain the 2024 budget beyond the current December 20th funding deadline.

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Despite earlier hopes that the FY 2025 budget would be passed before adjourning Dec. 20, passing the new budget before the new Congress in January is no longer likely. 

As a result, Congress will likely extend current government funding through a Continuing Resolution (CR). Since CRs maintain the previous FY’s funding levels, continuing government program funding in this way is effectively a budget cut as using the past budget fails to account for inflation.

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Extending the CR into the new year will make it difficult for Public Housing Agencies (PHAs) to administer crucial resources such as the Housing Choice Voucher (HCV) program. 

HCV’s currently support 2.3 million households and over 5 million individuals by providing vouchers that can be used in the private housing market and meet housing needs. Because the cost of housing assistance programs rises each year, increased annual funding is essential to maintain the level of assistance currently provided. As it stands, the funding provided by the Senate’s spending bill would put 65,000 families at risk of losing vouchers.

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To maintain assistance for families currently participating in the program and provide needed aid to those currently unserved, Congress must pass a final FY 2025 budget that accounts for increases in costs.

If lawmakers fail to pass a final spending bill by the end of April 2025, the government will face spending cuts across-the-board as a result of sequestration. 

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Continuing resolutions provide inadequate funding in the interim and leave funding of essential housing assistance programs in jeopardy in the hands of a new Congress. 

This indecision will have hard-felt effects on those whose ability to keep their family housed relies on federally funded housing assistance. As it stands, CRs and partial funding cannot cover existing program participants, let alone expand capacity for those still in need of housing assistance. 

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HUD has warned PHAs to prepare for underfunding of key HUD programs. 

In a Dec. 6 letter, the Department of HUD warned PHAs that HCV HAP funding in FY 2025 is likely to be very tight and suggested PHAs manage their programs to mitigate shortfalls due to the decreases in budget.

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As we move into the new year, PHAs will have to make tough decisions as they operate vital programs with an inadequate budget. 

Families who rely on housing assistance will suffer as a result of Congress’s inability to pass the FY25 budget this fall. Stable housing for those most in need lies in the hands of lawmakers as we move forward into a new year, new Administration, and new Congress with the same goals: increasing capacity for affordable housing and assistance programs for those who need it most.

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