Biden’s Budget Includes Several New Housing Proposals
President Biden today proposed a $7.3 trillion budget for fiscal year 2025, which runs from Oct. 1, 2024 through Sept. 30, 2025, that includes several tax hikes as well as many housing provisions designed to increase the housing supply and reduce housing costs.
Biden’s budget would raise taxes for billion-dollar companies from 15% to 21% and hike the broader corporate tax rate to 28%.
It is important to note that no White House budget is ever approved “as is” by Congress. The annual appropriations process determines the levels of federal spending for each of the federal departments and agencies, and all programs within their respective jurisdictions.
Although the president’s budget recommends spending levels for the next fiscal year, it is not legally binding. Congressional appropriators have the final say in program realignment and spending levels.
Meanwhile, six months into the fiscal 2024 budget year, Congress must still complete work on funding half of the government agencies before March 22 or the government will go into a partial shutdown.
On the housing front, Biden is seeking an investment of more than $258 billion to build or preserve more than 2 million housing units.
Specifically, the Biden budget would:
- Expand the Low-Income Housing Tax Credit.
- Provide a new tax credit for first-time home buyers of up to $10,000 over two years.
- Provide $7.5 billion in mandatory funding for new Project-based Rental Assistance contracts to incentivize the development of new climate-resilient affordable housing.
- Reduce down payments for first-time and first-generation home buyers.
- Provide a one-year tax credit of up to $10,000 to middle-class families who sell their starter home.
- Provide $20 billion in mandatory funding for a new innovation fund for housing expansion.
- Invest $1.3 billion in the HOME Investment Partnerships Program
NAHB will continue to monitor the appropriations process as funding decisions are made on key housing, tax, labor and environmental programs. We will also closely examine Biden’s housing proposals and urge Congress to advance those that are favorable to the housing community.
Latest from NAHBNow
May 22, 2025
House Approves Tax Bill with Key Housing and Business ProvisionsBy a vote of 215-214, the House early in the morning on May 22 narrowly passed the One Big Beautiful Bill Act, sweeping tax and domestic policy legislation that NAHB believes is very positive for small businesses, real estate and our members.
May 22, 2025
Income Growth Helps Mute Existing Affordability ConstraintsDespite solid income gains and lower home prices, Americans still continue to face major housing affordability challenges, according to the latest data from the NAHB/Wells Fargo Cost of Housing Index (CHI). The CHI results from the first quarter of 2025 show that a family earning the nation’s median income of $104,200 needed 36% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 72% of their earnings to pay for the same new home.
Latest Economic News
May 22, 2025
Existing Home Sales Fall in AprilDespite the brief retreat in mortgage rates and increased supply, existing home sales dropped to 7-month low in April, according to the National Association of Realtors (NAR). This unexpected decline suggests buyers’ activity continues to be constrained by economic uncertainty and ongoing affordability challenges even with improved market conditions.
May 22, 2025
Income Growth Helps Mute Existing Affordability ConstraintsDespite solid income gains and lower home prices, Americans still continue to face major housing affordability challenges, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).
May 21, 2025
Gains for Multifamily Missing Middle over Last YearThe missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties.