House Appropriations Committee Announces FY25 Schedule and Subcommittee Allocations
In late May, U.S. House of Representatives started the Fiscal Year 2025 (FY25) appropriations process, setting crucial dates and outlining topline funding allocations for federal agencies, like HUD and USDA. On May 16th, House Appropriations Committee Chair Tom Cole (R-OK) announced the subcommittee and full committee markup schedule for the FY25 appropriations bills. These markups allow members to offer amendments and vote on bills before they are recommended to the full House for final floor votes.
The Transportation, Housing, and Urban Development (THUD) bill, funding legislation that covers most of HUD’s housing and community development programs, is slated for a subcommittee markup on June 27 and a full committee markup on July 10. The subcommittee markup for the Agriculture, Rural Development, Food and Drug Administration (Agriculture-FDA) bill on June 11, with a full committee markup also on July 10 (covers RD and RHS programs).
House Majority Leader Steve Scalise (R-LA-01) has stated an ambitious goal of passing all 12 appropriations bills out of the House before the August recess. The Agriculture-FDA bill is expected to receive a floor vote the week of July 22, while the THUD bill is anticipated for a vote the week of July 29. However, these dates remain flexible, as the appropriations process often encounters delays due to funding level disagreements.
On May 23, the House Appropriations Committee also approved the subcommittee allocations for the FY25 appropriations bills along party lines (30 to 22). These allocations, known as 302(b)s, propose a 6 percent cut for non-defense discretionary programs compared to FY24 levels. The reductions impact key accounts that fund programs at HUD and USDA. The approved FY25 allocations for these programs are: Agriculture-FDA: $25.87 billion and THUD: $90.8 billion.
These allocations fall below the spending levels outlined in the Fiscal Responsibility Act of 2023 and the FY25 President’s Budget Request. It is anticipated that, similar to FY24, a side-deal for funding will be necessary to prevent severe cuts to essential non-defense programs and to avoid a government shutdown stemming from funding disagreements among Democrats, Republicans, and between the House and Senate. NAHMA will continue to advocate for increased funding for key housing and community development programs throughout the summer’s appropriations process.
CFPB Launches RFI on Mortgage Closing Costs
The Consumer Financial Protection Bureau (CFPB) has released a Request for Information (RFI) to address the issue of “junk fees” contributing to increased mortgage closing costs. The aim is to identify the factors driving these rising expenses and to find solutions to reduce costs for both borrowers and lenders.
Mortgage closing costs, paid by borrowers when obtaining a home loan, include fees for credit reports, home value appraisals, and title insurance, which protects lenders against property-related issues. The CFPB notes that the growing burden of these fees is restricting households’ ability to afford homeownership and impacting lenders’ competitiveness. Lenders are faced with the choice of absorbing these higher costs or passing them on to borrowers, neither of which is ideal.
The CFPB’s RFI seeks comments and data from stakeholders, including consumers, lenders, and industry experts, to gain insights into the drivers of these fees and potential measures to mitigate them. The inquiry is a step toward enhancing affordability in the housing market by addressing unnecessary costs that can make homeownership unattainable for many. Interested parties have until August 2nd to respond to the RFI’s publication.
APA and NLC Release Housing Supply Accelerator Playbook
Last month, the American Planning Association (APA) and the National League of Cities (NLC) have jointly unveiled the Housing Supply Accelerator Playbook, a comprehensive guide aimed at local elected officials and community planners. This resource offers a variety of solutions to tackle housing supply shortages, focusing on strategies to eliminate regulatory barriers and finance housing production and preservation.
The playbook highlights the growing disconnect between housing supply and demand across the nation, a disparity that is intensifying affordability issues for lower-income households. It emphasizes the need for a multifaceted approach to bridge the U.S. housing supply gap, advocating for the expansion, preservation, and improvement of housing stock in local jurisdictions.
The Housing Supply Accelerator Playbook is part of a broader national initiative co-led by the APA and NLC, known as the Housing Supply Accelerator campaign. This campaign seeks to enhance local capacity, identify critical solutions, and accelerate reforms that facilitate collaboration between communities and developers. The goal is to produce, preserve, and provide a diverse range of quality housing options.
By providing practical strategies and resources, the playbook aims to empower local leaders to address the pressing issue of housing shortages. It serves as a vital tool for fostering more affordable and inclusive housing markets, ensuring that communities can meet the housing needs of their residents effectively. As housing affordability continues to be a major challenge, the Housing Supply Accelerator Playbook offers a proactive roadmap for local governments and planners to create sustainable and equitable housing solutions.
White House Releases Climate Capital Guidebook
Last week, the Biden-Harris Administration released a new Climate Capital Guidebook, designed to streamline access to federal funding opportunities for climate-related start-ups, small- and medium-sized businesses, and their investors. This guidebook offers a detailed map of available capital programs across the federal government, providing crucial support to smaller enterprises that often struggle to navigate the complex landscape of federal funding.
The Guidebook catalogs a wide range of financing and funding programs initiated and expanded by the Administration. These include opportunities created by the Bipartisan Infrastructure Law, the Inflation Reduction Act, and longstanding annual appropriations. The comprehensive inventory spans multiple federal departments, such as the Department of Energy (DOE), USDA, the Small Business Administration (SBA), and the Export-Import Bank of the United States. Collectively, these programs represent hundreds of billions of dollars in grants, loans, loan guarantees, and other financial tools aimed at promoting clean energy and climate projects.
A key aspect of the Guidebook is its emphasis on delivering cleaner air, good-paying jobs, and affordable clean energy to disadvantaged and energy communities. This aligns with President Biden’s Justice40 Initiative, which aims to ensure that 40% of the overall benefits of certain federal climate, clean energy, and related investments reach marginalized and overburdened communities.
One significant highlight of the Guidebook is its focus on expanding financing for small businesses to adopt clean energy technologies. Recognizing the crucial role small businesses play in achieving net-zero emissions by 2050, the SBA has made a notable adjustment to its 504 Loan Program. This program provides long-term, fixed-rate loans of up to $5.5 million for energy and manufacturing projects, including capital expenditures on real estate or equipment.
Previously, the 504 Loan Program limited each small business to a maximum of three loans, totaling $16.5 million. However, the SBA has now lifted this cap specifically for “energy public policy projects,” which include initiatives that reduce energy consumption or incorporate renewable energy solutions such as solar installations. This change allows small businesses to bundle multiple 504 loans, significantly increasing the total financing available for projects that enhance energy efficiency, lower production costs, and contribute to emissions reduction goals.
By removing these limitations, the SBA aims to empower small businesses to invest more robustly in clean energy and climate solutions. This increased access to capital is expected to accelerate the deployment of new clean energy technologies, support job creation, and drive economic growth in communities across the United States.
The release of the Climate Capital Guidebook marks another action in the Administration’s ongoing efforts to address climate change and promote a “sustainable, equitable” future. As businesses and investors explore these opportunities, the guidebook is another resource.