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
Jul 02, 2025
From Disaster Relief to Challenging Gas Bans, HBAs are Making a DifferenceNearly two dozen HBAs received Association Excellence Awards for outstanding contributions they made on behalf of their members and communities in 2024.
Jul 01, 2025
One Big Beautiful Bill Act Will Spur Economic GrowthNAHB Chairman Buddy Hughes issued the following statement after the Senate passed the One Big Beautiful Bill Act.
Latest Economic News
Jul 02, 2025
Two or More Story Home Starts Rebound in 2024Over half of new single-family homes built in 2024 were two or more stories, according the recent release of the Census Bureau’s Survey of Construction (SOC). After declining in 2023, the share of homes started with two or more stories increased again in 2024, continuing the upward trend in place since 2020.
Jul 01, 2025
May Private Residential Construction Spending DipsPrivate residential construction spending fell by 0.5% in May, marking the fifth straight month of decreases. This drop was primarily driven by reduced spending on single-family construction. Compared to a year ago, total spending was down 6.7%, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.
Jul 01, 2025
Flat Job Openings for ConstructionThe count of open, unfilled positions in the construction industry held steady amid a slowdown for housing, per the May Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).