Weakening The Ability of Federal Agencies to Administer Critical and Life-Saving Programs and Investments – “Flat” Funding
Jessilyn Averill
“Flat” funding in the 2025 fiscal year (FY25) federal budget will be a cut to federal funding for housing-related programs and staffing. Likewise, all budget reconciliation cuts proposed are not acceptable! This type of budgeting does not keep up with inflation and will not reduce homelessness and housing instability.
To better meet record levels of need and keep families housed, Congress must increase 2025 funding for housing assistance. However, under current House and Senate proposals there would be, for example, a reduction in people served by a Housing Choice Voucher (HCV), a critical rent subsidy for very low income people who find their own housing in private homes and apartment buildings.
Figure 1 shows the difference between the House and Senate proposals for decreasing funding for HCVs. Graphic courtesy of Center on Budget and Policy Priorities (CBPP).
The House proposal is short $4.3 billion (or 11.4%) of necessary funding, estimating 749,800 fewer people served.
The Senate proposal is short $800 million (or 2.5%) of necessary funding, estimating 136,900 fewer people served.
Effective as of April 2, 2025, source of income nondiscrimination is statewide law in Michigan. The law protects tenants using HCVs, Veterans’ benefits, alimony, MDHHS cash assistance, or SSI/SSDI. But, if the FY25 budget passes with cuts to HCV funding, more people in Michigan will not benefit from using HCVs when needed while also not benefitting from an important tenant protection that took the last three years to achieve.
At a time Congress proposes harmful budget cuts to programs that make a difference to communities across the country, there are also proposals to extend tax cuts for the wealthy.
Figure 2 shows the difference between household incomes and the average tax change under the current tax law. Graphic courtesy of CBPP.
Extending these cuts will only further benefit the Top 1 Percent ($837,800 or more in income). The average tax change for this group will be $61,090.
For those in the Middle Quintile ($53,400-91,700) it will be $910.
And, for those in the Lowest Quintile ($0-27,300) it will be only $70.
Cutting the programs that many households need access to and depend on while enriching those with the highest level of wealthy shifts costs to states and is unfair.
Take Action!
Urge members of Congress to increase, not cut, funding for what has been tested and effective solutions to ending homelessness. Concentrate on what gets results (i.e., HCVs are guaranteed rent payments for landlords too; Medicaid and SNAP dollars are also investments in local services and retail). Flood the zone and unpack the harm that will be caused from these cuts.
Ensure robust funding for key programs in FY25 appropriations and beyond. Take action with National Low Income Housing Coalition here.
Protect Medicaid and SNAP in budget "reconciliation" package negotiations. Read CBPP statement here then act by contacting your elected representatives.
This work has always been hard. We can’t let up now.