President Biden Signs FY2023 Federal Budget

On December 29, 2022, President Biden signed the $1.7 trillion FY2023 federal budget to keep the government running through the end of the budget year in September 2023. According to PBS NewsHour, the omnibus spending bill contains $772.5 billion in spending for domestic programs, a roughly 6% increase. Spending on defense programs rose by about 10% to $858 billion.

The budget provides an additional $8.1 billion, or $61.8 billion in total, for programs of the U.S. Department of Housing and Urban Development (HUD) compared to FY2022 spending. According to the National Low Income Housing Coalition, the budget includes enough funding to renew all existing Housing Choice Vouchers and Project-Based Rental Assistance and will expand rental assistance vouchers to an additional 12,000 households. Other programs also received increased funding, including Public Housing Operating Funds, Homeless Assistance Grants, Section 202 Housing for the Elderly, and fair housing programs.

The Community Development Block Grant program, HOME Investment Partnerships, and the Choice Neighborhood programs received level funding.

The Public Housing Capital and Healthy Homes programs received slight decreases in funding. 

The final spending bill does not include a tax extenders package related to the Low-Income Housing Tax Credit (LIHTC) to extend the 12.5% allocation increase that expired in December 2021 and to lower the 50% bond threshold. Efforts to enact this tax legislation will likely continue into 2023.