December 23, 2020

Congress Passes FY21 Appropriations Package and COVID-19 Relief Bill

This week, Congress passed a year-end legislation package that combined a $1.4 trillion omnibus fiscal year 2021 (FY21) funding bill and a $900 billion COVID-19 relief bill. The FY21 omnibus provides increased funding levels for nearly all of HUD’s affordable housing and community development programs. Overall, the funding levels for both HUD and USDA are positive and maintain funding increases from FY20, despite both agencies facing significant cuts proposed in the administration’s FY21 budget request and the threat of yearlong continuing resolutions. For HUD, the FY21 bill provides $49.6 billion, a $561 million increase from last fiscal year, and over $12 billion more than the administration’s budget request. For USDA Rural Development, the FY21 bill provides mostly the same funding with some increases to preserve rural housing. In providing increased funding, Congress sustained its rejection of the Administration’s proposed rent reforms to HUD’s rental assistance programs. Congress also provided funding for several key affordable housing programs, including the Public Housing Capital Fund, Housing Trust Fund, HOME, CDBG, Choice Neighborhoods, and the U.S. Interagency Council on Homelessness. For more information, please see the chart below and recent NAHMAnalysis :

In addition to passing the government funding bill, Congressional leaders were also able to reach a deal on a $900 billion COVID-19 relief bill to provide direct support to the hard-hit workers amid the continued pandemic. The bill provides

• Provides $25 billion in Emergency Rental Assistance
• Extends eviction moratorium until January 31
• Provides direct payments of $600 to most Americans making less than $75,000
• Provides $300-per-week in enhanced unemployment benefits through April
• Enacts a permanent minimum 4 percent LIHTC rate
• Includes $1.1 billion allocation of disaster LIHTC for 11 states and Puerto Rico
• Provides $284 billion for the Paycheck Protection Program that provides forgivable loans to small businesses and includes money for transportation — including for airlines — vaccine distribution, schools and universities, and food aid

Initially, President Trump indicated he would sign the legislation to fund the government and provide much needed pandemic relief. But on Tuesday President Trump signaled he may not sign a $900 billion coronavirus relief package just one day after Congress passed it with bipartisan support, citing “wasteful and unnecessary” items and demanded that lawmakers increase the stimulus checks due to go out to most individual Americans from $600 to $2,000, or $4,000 for a couple. NAHMA will keep members updated, if any changes to the legislation are made.