Statement by HUD Secretary Fudge on the President's Fiscal Year 2023 Budget
Budget Proposes Transformational Investments to Support Underserved Communities and Equitable Community Development, Increase Access to and Production of Affordable Housing, Promote Homeownership and Wealth-Building, Advance Sustainable Communities, Climate Resilience, and Environmental Justice, and Strengthen HUD's Internal Capacity

The Biden-Harris Administration today submitted to Congress the President's Budget for fiscal year 2023. The President's Budget details his vision to expand on the historic progress our country has made over the last year and deliver the agenda he laid out in his State of the Union address-to build a better America, reduce the deficit, reduce costs for families, and grow the economy from the bottom up and middle out.

"HUD's mission is critical to achieving the President's vision to build a better America-one where we are ensuring that every person has a shot to get ahead and addressing longstanding systemic challenges, including racial injustice, rising inequality, and the climate crisis," said U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge. "This Budget tells the American people that the President, and our agency, view housing as a foundational platform to help address the most urgent challenges facing our nation. This Budget will help us meet our mission to provide security and stability for those who live on the outskirts of hope, advance opportunity and equity on behalf of marginalized communities, and meet the existential threats posed by natural disasters and climate change."

The 2023 President's Budget requests $71.9 billion for HUD, approximately $11.6 billion more than the 2022 annualized continuing resolution (CR) level. The Budget outlines an ambitious agenda to address challenges our nation faces, ranging from climate change to housing discrimination to racial equity in homeownership and rental housing, to ending homelessness.

The Budget makes critical investments in the American people that will help lay a stronger foundation for shared growth and prosperity for generations to come. For HUD and those it serves, the Budget would:

• Support Underserved Communities and Equitable Community Development. The Budget fortifies support for underserved communities and supports equitable community development for all people. To quickly house more people experiencing housing insecurity, the Budget provides $32.1 billion for the Housing Choice Voucher Program, which accommodates 200,000 new vouchers - the largest one-year increase in vouchers since the program was authorized in 1974 - prioritizing survivors of domestic violence, dating violence, sexual assault, stalking, and human trafficking, and households experiencing homelessness. The Budget also provides $8.8 billion for the Public Housing Fund, which provides grants to Public Housing Authorities to operate, maintain, and make capital improvements to the approximately 1.7 million residents of public housing. The Budget also addresses the nation's homelessness, crisis, providing $3.576 billion, an increase of $576 million, for Homeless Assistance Grants, to help communities reduce homelessness among families, individuals, and youth, including survivors of domestic and dating violence, sexual assault, stalking, and human trafficking. Additionally, the Budget provides $3.8 billion for the Community Development Block Grant (CDBG) Program, including $195 million in targeted resources to remove barriers and revitalize 100 of the most historically underserved neighborhoods in the United States, and $86 million for fair housing programs for targeted and coordinated enforcement, education, and outreach.
• Increases Supply of and Access to Affordable Housing. The Budget works to ensure that housing demand will be matched by adequate production of new homes and equitable access to housing opportunities for all people. It requests $35 billion for the Housing Supply Fund, a new mandatory program providing grants to State and local housing finance agencies and their partners to invest in strategies to increase the supply of affordable housing. Additionally, the Budget provides $2 billion for the HOME Investment Partnerships (HOME) Program, which has long served as an anchor of the nation's affordable housing system. The Budget proposes $15 billion to fully fund renewals and amendments in the Project-Based Rental Assistance, Housing for Persons with Disabilities, and Housing for the Elderly Programs, along with $180 million for new development in Section 202 Housing for the Elderly and Section 811 Housing for People with Disabilities. The Budget also proposes Ginnie Mae authority to securitize affordable multifamily housing loans made by Housing Finance Agencies (HFAs) and insured under the Federal Housing Administration's (FHA) Section 542(c) Risk-Sharing program.
• Promote Homeownership and Wealth-Building. The Budget promotes homeownership opportunities, equitable access to credit for home purchases and improvements, and wealth-building in underserved communities. It provides $15 million of credit subsidy through FHA for a Home Equity Accelerator Loan (HEAL) Pilot that would test new loan products designed to lower barriers to homeownership for first-generation and/or low-wealth first-time homebuyers. Additionally, the Budget provides a new $100 million set-aside under the HOME Program for the FirstHOME Downpayment Assistance initiative that would provide funding to States and insular areas to better support sustainable homeownership for first-generation and/or low-wealth first-time homebuyers.
• Advance Sustainable Communities, Climate Resilience, and Environmental Justice. The Budget advances sustainable communities by strengthening climate resilience and energy efficiency, promoting environmental justice, and recognizing housing's role as essential to health. It provides $1.1 billion in targeted climate resilience and energy efficiency improvements in public housing, Tribal housing, multifamily-assisted housing, and other assisted housing. In addition, it provides $400 million to remove dangerous health hazards from homes, including mitigating threats from fire, lead, carbon monoxide, and radon. It provides $250 million to help communities develop and implement locally driven comprehensive neighborhood plans to transform underserved neighborhoods. The Budget also supports authorizing the Community Development Block Grant-Disaster Recovery (CDBG-DR) program and Ginnie Mae's continuing Environmental, Social, and Governance disclosure efforts, which are intended to drive new liquidity to more environmentally sustainable products by meeting growing investor demand.
• Strengthen HUD's Internal Capacity to Carry Out Its Mission. The Budget provides HUD with robust resources to strengthen its internal capacity and efficiency to better ensure delivery of the Department's mission. The 2023 Budget requests $1.8 billion toward salaries and expenses (S&E), $306 million more than the annualized CR level for 2022, which, in combination with carryover of 2022 funding, will support 8,326 full-time equivalent (FTE) employees. The 2023 Budget will support the gains made in 2021 and projected for 2022 and provide for continued increases in staffing, which will enable the Department to more effectively and efficiently serve households and communities across the country. The Budget also proposes $382 million for the IT Fund, to continue to invest in much needed modernization of HUD's IT systems, infrastructure, and cybersecurity.

The Budget makes these smart investments while also reducing deficits and improving our country's long-term fiscal outlook.

For more information on the President's FY 2023 Budget, please visit: https://www.whitehouse.gov/omb/budget/. To read HUD's Fiscal Year 2023 Budget in Brief, please visit: HUD's website.

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