Editor’s Note: This is a budget and appropriations appendix to the Project 2029 Housing Brief. The purpose of this appendix is to provide initial context and scoping of the possible budgetary and appropriations impacts of the policy responses proposed and detailed in that brief.

Problem #1 & Proposed Policy Solution

Following the Great Recession of 2007-2009, Fannie Mae and Freddie Mac sold large volumes of repossessed homes to hedge funds and private equity firms. Many of these institutional investors converted the homes into high-priced rentals. This reduces supply, drives up housing costs, concentrates ownership in rental markets, and decreases the availability of lower-cost rental units. All of which contribute to the housing affordability crisis.

Proposed Policy Solution: Use existing federal housing finance tools to discourage concentrated housing market ownership by institutional investors in vulnerable areas while protecting first-time buyers, small landlords, and mission-driven housing providers. A future administration must direct Fannie Mae and Freddie Mac to impose higher fees, tax disincentives, or stricter capital requirements on large-scale investors, especially those operating in vulnerable neighborhoods, to encourage competitive housing markets.

Policy Program Area Description & Key Budget Points

The Federal Housing Finance Agency (FHFA), an independent agency established by the Housing and Economic Recovery Act of 2008 (HERA), is responsible for the effective supervision, regulation, and housing mission oversight of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Home Loan Bank System. The Agency's charge is to ensure that Fannie Mae, Freddie Mac, and the Federal Home Loan Banks fulfill their mission by operating in a safe and sound manner to serve as a reliable source of liquidity and funding for housing finance and community investment. Since 2008, FHFA has also served as conservator of Fannie Mae and Freddie Mac. FHFA does not receive annual appropriations from Congress. Rather, FHFA is funded through assessments on the entities it regulates (Fannie Mae, Freddie Mac, and the Federal Home Loan Banks). FHFA’s annual operating costs are reported in the Agency’s annual Performance and Accountability Report (PAR) and summarized in the table below.

• Source: Federal Housing Finance Agency Home Page

Key Budget and Funding Points

• Fannie Mae and Freddie Mac collectively manage nearly $8 trillion in housing finance.

• FHFA program costs total approximately $400 million annually.

• While the Department of Housing and Urban Development’s (HUD’s) entire annual discretionary appropriated budget (about $80 billion) is about 1/100th the size of the aggregate value of Fannie Mae and Freddie Mac’s financing portfolio, there are likely numerous opportunities to utilize existing HUD housing finance tools to discourage concentrated housing market ownership by institutional investors in vulnerable areas.
  

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• Sources: 

  FHFA 2020 Performance and Accountability Report
  FHFA 2021 Performance and Accountability Report
  FHFA 2022 Performance and Accountability Report
  FHFA 2023 Performance and Accountability Report
  FHFA 2024 Performance and Accountability Report

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• Source: FHFA 2024 Annual Report to Congress (most recent)

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• Sources: 

  FY 2025 HUD Congressional Budget Justification
  FY 2026 HUD Congressional Budget Justification
  FY 2027 HUD Congressional Budget Justification

Problem #2 & Proposed Policy Solution

Staff cuts to the Federal Housing Administration, and the rescission of numerous Housing and Urban Development policies have removed policies and programs that serve those most impacted by and at-risk of inadequate housing. 

Proposed Policy Solution: The administration must instruct HUD to review all policies that were rescinded to identify those to be reinstated and expanded to support the goals of adequate housing for all. 

Policy Program Area Description & Key Budget Points

The primary HUD account implicated by this problem and proposed response is the Federal Housing Administration (FHA). FHA provides mortgage insurance on single- family mortgage loans made by approved lenders throughout the United States and its territories. The programmatic costs to administer FHA are funded via annual appropriations in the Housing Programs account of HUD’s budget. The table below describes recent HUD and FHA appropriations trends.

• Source: Federal Housing Administration Home Page

Key Budget and Funding Points

• FHA has seen stable funding in recent years, approximately $150M - $160M in direct annual discretionary appropriations. 

• While staff may have in fact left FHA recently, the departures do not appear to be a result of funding cuts.

• FHA should ensure adequate staffing levels through standard, albeit rigorous, recruitment efforts to ensure the policy

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• Sources: 

  FY 2025 HUD Congressional Budget Justification
  FY 2026 HUD Congressional Budget Justification
  FY 2027 HUD Congressional Budget Justification

Problem #3 & Proposed Policy Solution

Unbearable housing cost burden. Renters and owners are considered “cost-burdened” if they spend more than 30% of their monthly income on housing. According to the 2024 American Community Survey, this describes 40 million Americans- nearly a third of all housing units, rented or owned.

• Source: S2503: Financial Characteristics - Census Bureau Table

Proposed Policy Solution: Expand and guarantee sustainable funding for rental assistance through the Housing Choice Voucher Program to serve every eligible household.

Policy Program Area Description & Key Budget Points
The primary HUD account implicated by this problem and proposed response is the Tenant-Based Rental Assistance Program (TBRA). TBRA, also known as the Housing Choice Voucher (HCV) program, seeks to expand housing opportunities for very low and extremely low-income families; reduce the number of homeless individuals, families, youth, and veterans; and support community-based living for people with disabilities. In FY 2026, the Administration proposed renaming TBRA the “State Rental Assistance Program” and transferring authority for program administration to the individual states. TBRA is an annually appropriated account in HUD’s Public and Indian Housing sub-appropriation. Funding for TBRA is described in the table below.

• Source: HUD Exchange - TBRA

Key Budget and Funding Points

• The $38B-plus TBRA program has seen stable funding in recent years. 

• TBRA funding ($38.5B in FY 2026) comprises approximately 80% of the total Public and Indian Housing budget ($48.4B in FY 2026) and nearly 50% of HUD’s entire annual direct discretionary appropriation ($84.2B in FY 2026).

• Expanding and guaranteeing sustainable TBRA funding for rental assistance through the HCV Program could extend the reach of the program to additional eligible households.

• Average funding available to eligible individuals and families could also potentially increase if aggregate TBRA/HCV program funding increased.

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• Sources: 
  FY 2025 HUD Congressional Budget Justification
  FY 2026 HUD Congressional Budget Justification
  FY 2027 HUD Congressional Budget Justification

Problem #4 & Proposed Policy Solution

Federal Housing Policy prioritizes homeowners over renters.

Proposed Policy Solution: Introduce Congressional legislation to create a federally-funded, state-administered renters’ tax credit. The limited cost credit will utilize federal income eligibility to target the lowest income households, and allow states to deliver the credits within their policy preferences, such as targeting families at risk of homelessness, veterans, seniors, and people with disabilities.

Policy Program Area Description & Key Budget Points
The policy proposal recommends a new renters’ tax credit with a federal cap of $5 billion worth of credits, which will fund state Renters Tax Credits to serve approximately 1.2 million families. 

Key Budget and Funding Points

• A nonrefundable renters’ tax credit will not directly impact federal appropriations or federal agency funding.

• Congress will have to pass legislation to amend the Internal Revenue Code to create the renters’ tax credit and define its rules.

• The Congressional Joint Committee on Taxation will have to score the credit, and the Congressional Budget Office will use JCT’s scoring estimates to determine the credit’s prospective impact on overall federal revenue and the federal deficit.

• Presumably, a $5B renters’ tax credit will reduce future federal revenues by up to $5B.

Problem #5 & Proposed Policy Solution

Inadequate housing supply.

Proposed Policy Solution: Congress must pass the Affordable Housing Credit Improvement Act (AHCIA) to make critical reforms to the Low-Income Housing Tax Credit. HUD must also expand the designation of “Difficult to Develop” to rural areas, making them eligible for increased subsidies for developers building under the LIHTC program, and therefore more financially viable.

Policy Program Area Description & Key Budget Points
The Low-Income Housing Tax Credit (LIHTC) program is the federal government's primary policy tool for encouraging the development and rehabilitation of affordable rental housing. The program awards developers federal tax credits to offset construction costs in exchange for agreeing to reserve a certain fraction of units that are rent-restricted for lower-income households. 

• Source: Congressional Research Service (CRS): An Introduction to the Low-Income Housing Tax Credit

Key Budget and Funding Points

• The non-refundable LIHTC will not directly impact federal appropriations or federal agency funding.

• Congress will presumably have to pass legislation to amend the Internal Revenue Code to modify the LIHTC by increasing the tax credit basis by 50% and further defining its rules.

• The Congressional Joint Committee on Taxation will have to score the revised credit, and the Congressional Budget Office will use JCT’s scoring estimates to determine the credit’s prospective impact on overall federal revenue and the federal deficit.

• Action undertaken by HUD to expand the designation of “Difficult to Develop” will not have any tangible budget or funding implications.

Problem #6 & Proposed Policy Solution

Zoning and land-use laws limit the supply of affordable, accessible housing, resulting in residential segregation and discouraging public transit use. 

Proposed Policy Solution: Call upon Congress to require the US Department of Transportation (DOT) to incentivize inclusive zoning and land-use reforms and to promote the development of mid-level housing. Additionally, the DOT must expand the existing use of scoring systems for competitive funding applications to prioritize land-use reforms and zoning objectives. Finally, fair housing policies and principles must be embedded in housing and tax credit programs, particularly in HUD’s Low-Income Housing Tax Credit and the Treasury Department’s Community Development Financial Institutions Fund.

Policy Program Area Description & Key Budget Points

The Federal Highway Administration (FHWA) is the DOT office responsible for federal highway planning, design, and construction. FHWA works with state and local governments to ensure that transportation projects comply with federal land use and zoning regulations when they affect public rights‑of‑way, environmental reviews, or community planning. The Federal Transit Authority (FTA) oversees federal funding and programs for public transportation. FTA requires zoning and land use compatibility for transit projects, especially when they involve new facilities or redevelopment. FHWA and FTA are two large programs funded annually in the Department of Transportation’s annual appropriations bill.

• Sources: 
  Federal Highway Administration Homepage
  Federal Transit Administration Homepage

Key Budget and Funding Points

• Many zoning and land-use programs are administered at the state and local levels, although they are typically overseen at the federal level, principally by FHWA and FTA. 

• FHWA’s annual discretionary appropriation is approximately $70B, and FTA’s annual appropriation is approximately $20B

• Both FHWA and FTA provide federal oversight of zoning and land-use issues.

• The actions proposed in the policy response impose requirements on state, regional, and local governments to promote inclusive zoning and land-use reforms and spur enhanced development of mid-level housing.

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• Sources: 
  FY 2025 DOT Congressional Budget Justification
  FY 2026 DOT Congressional Budget Justification
  FY 2027 DOT Congressional Budget Justification

Problem #7 & Proposed Policy Solution

Federal housing, infrastructure, transportation, and social service programs often operate in disjointed and uncoordinated ways, which may result in inefficient use of resources, inconsistent guidance to states and localities, and missed opportunities for interagency collaboration. 

Proposed Policy Solution: Issue an Executive Order establishing a White House Interagency Council on Affordable Housing to coordinate federal housing-related programs and funding streams. 

Policy Program Area Description & Key Budget Points
This policy response issues an Executive Order to create a special White House Interagency Council on Affordable Housing, which can presumably be accomplished – and will likely be required to occur – within existing appropriations. The Council will be comprised of officials from HUD, DOT, DOI, EPA, DOJ, USDA, VA, HHS, FEMA, and other relevant agencies.

Key Budget and Funding Points

• The White House Council on Affordable Housing can likely fulfill its mandate –aligning programs, modifying policies, producing reports, issuing guidance, and tracking actions – with little to no impact on existing federal agency appropriations.

Problem #8 & Proposed Policy Solution

Homelessness in the U.S. continues to grow, increasing by 30% from 2022-24 when 2.3 out of every 1000 people were homeless, with disproportionately high rates among Hispanic, Black, Native American, and male populations. Despite a proven track record of success in alleviating homelessness, the “Housing First” policy is not universally utilized across the U.S. 

Proposed Policy Solution: A new administration must repeal Executive Order 14238 to reinstitute the United States Interagency Council on Homelessness. Also, HUD must be directed to prevent the use of prerequisites that undermine the demonstrated success of the Housing First approach. A new administration needs to extend Housing First strategies to support homeless youth, particularly LGBTQ+ youth, and launch a federally funded Rapid Rehousing model for homeless youth. Finally, to further address homelessness, Congress should use the budget reconciliation process to expand mandatory funding for the National Housing Trust Fund (NHTF).

Policy Program Area Description & Key Budget Points

The U.S. Interagency Council on Homelessness (USICH) is tasked with coordinating the federal response to homelessness and creating a national partnership at every level of government and with the private sector to reduce and end homelessness in the nation while maximizing the effectiveness of the federal government in contributing to the end of homelessness. The National Housing Trust Fund (NHTF) is managed by HUD’s Office of Community Planning and Development. The NHTF is not funded through annual appropriations. Rather, it receives mandatory, formula‑driven contributions from Fannie Mae and Freddie Mac (a portion of their new business purchases is set aside each year and transferred to the HTF). The National Housing Trust Fund is a mandatory appropriation within HUD’s annual Congressional appropriation.

• Sources: 
  U.S. Interagency Council on Homelessness 
  National Housing Trust Fund Fact Sheet

Key Budget and Funding Points

• Prior to the issuance of EO 14238, the USICH had an operating budget of more than $4M, and a return to 2022-2024 levels of operations would likely require commensurate funding.

• Over the past few years, the Housing Trust Fund has been appropriated approximately $200M.

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• Source: USA Facts (OMB and U.S. Treasury Data)

• Sources: 
  FY 2025 HUD Congressional Budget Justification
  FY 2026 HUD Congressional Budget Justification
  FY 2027 HUD Congressional Budget Justification

Problem #9 & Proposed Policy Solution

Discriminatory, retaliatory, and arbitrary treatment of voucher holders in application screening and evictions prevents eligible households from accessing housing. Housing Choice Vouchers are an evidence-based policy success for improving housing stability. 

Proposed Policy Solution: Issue an Executive Order directing HUD and the DOJ to enforce the Fair Housing Act (FHA) by forming a dedicated Enforcement Unit to uphold the protections of the FHA, challenge unlawful evictions, and enforce related housing policy ordinances. Congress must provide the necessary funds for enforcement training programs. Backed by the provision of training to state and regional agencies, HUD and Congress will work together to incentivize or require state and regional administration of voucher programs. Congress must also expand the FHA to prohibit discrimination in housing for sexual orientation, gender identity, marital status, veteran status, or source of income. Renters and prospective homeowners must also be protected from discrimination by ensuring that tenant and credit-reporting agencies abide by the Fair Credit Reporting Act standards through funding and enforcement.

Policy Program Area Description & Key Budget Points

Enforcement of FHA is provided principally by HUD’s Office of Fair Housing and Equal Opportunity (OFHEO). When disputes require litigation, the Department of Justice’s Civil Rights Division’s Housing and Civil Enforcement Section steps in. OFHEO is a modest-sized office funded by direct annual appropriations under HUD’s “Other HUD Programs” account. 

• Source: HUD Office of Fair Housing and Equal Opportunity Fact Sheet

Key Budget and Funding Points

• Despite a proposed 70% cut in the FY 2026 President’s Budget, Congress has funded HUD/OFHEO at a steady rate over the past few years, at a level of $86M - $89M. 

• Additional funding for OFHEO will allow the office to enhance FHA enforcement and training efforts and work more closely with states and localities on enforcement, training, compliance, and other issues.

• Enhanced OFHEO funding will also allow the office to enter into reimbursable agreements with DOJ/CRT to advance FHA-related federal litigation objectives.
  

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• Sources: 
  FY 2025 HUD Congressional Budget Justification
  FY 2026 HUD Congressional Budget Justification
  FY 2027 HUD Congressional Budget Justification

Problem #10 & Proposed Policy Solution

Pandemic policies to protect households at risk of eviction and homelessness were a lifeline for families, but are running out even as we face a housing supply crisis.  

Proposed Policy Solution: Create a National Housing Stabilization Task Force within the Department of Housing and Urban Development to provide emergency rental assistance during a housing or financial crisis, as well as ongoing housing stability services. 

Policy Program Area Description & Key Budget Points

During the COVID-19 pandemic, the Department of the Treasury, through the Office of Recovery Programs, administered two Emergency Rental Assistance (ERA) programs that collectively provided communities with more than $46 billion to support housing stability for eligible renters. Treasury did not distribute ERA funds directly to renters or landlords. Instead, Treasury awarded funds to states, territories, counties, localities, and tribes. These entities then ran local ERA programs, processed applications, and made payments.

• Source: Department of the Treasury Emergency Rental Assistance Program

Key Budget and Funding Points

• The ERA1 program was authorized by the Consolidated Appropriations Act, 2021, and provided $25 billion to assist eligible households with financial assistance and housing stability services. 

• The ERA2 program was authorized by the American Rescue Plan Act of 2021 and provided $21.55 billion to assist eligible households with financial assistance, provide housing stability services, and, as applicable, to cover the costs for other affordable rental housing and eviction prevention activities.

• While it is unclear how much funding would be required for a successor Emergency Rental Assistance Program, the previous amounts – $21B to $25B – provide useful benchmarks for potential funding requirements.

Problem #11 & Proposed Policy Solution

AI and data broker tools, like RealPage, allow landlords in a region to engage in anti-competitive behavior, including coordination of rent levels, lease terms, utility contributions, etc. 

Proposed Policy Solution: Congress must pass the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act. 

Policy Program Area Description & Key Budget Points

The Preventing the Algorithmic Facilitation of Rental Housing Cartels Act will ensure that large landlords cannot skirt antitrust law and collude to increase rent prices across the country. The Act would be enforced by the Federal Trade Commission, U.S. Department of Justice, and State Attorneys General, within existing resources.

Key Budget and Funding Points

• This policy response supports legislation that would prohibit landlords from utilizing algorithms and related services that collect occupancy and lease data in order to recommend rents, vacancy rates, and lease terms.

• The Act can likely be implemented without any tangible impacts on federal agency appropriations.

• Source: S. 3692 The Preventing the Algorithmic Facilitation of Rental Housing Cartels Act

Problem #12 & Proposed Policy Solution

Bias in application, credit, and lending systems prevents equitable access to housing and rental markets. 

Proposed Policy Solution: Encourage Congress to expand the Consumer and Financial Protection Bureau's regulations for fair mortgage lending to prohibit and prevent bias via the use of automated systems, including algorithms and AI, in property valuation models and credit application systems. Additionally, the DOJ must enforce the Fair Housing and Equal Credit Opportunity Acts by banning any lenders or housing providers from accessing federal programs or assistance for five years if they are found in violation.

Policy Program Area Description & Key Budget Points

The Consumer Financial Protection Bureau (CFPB) was created in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. Dodd-Frank specified that the CFPB would be funded outside of congressional appropriations through quarterly transfers from the Federal Reserve as requested by the CFPB. Within CFPB, regulations for fair mortgage lending are managed by the Office of Fair Lending and Equal Opportunity (OFLEO).

• Source: The Consumer Financial Protection Bureau Budget: Background, Trends, and Policy Options (Congress.gov)

Key Budget and Funding Points

• In recent years, CFPB funding has ranged from $600M - $800M per year.

• Expanding regulations for fair mortgage lending to prohibit and prevent bias via algorithmic and AI-centric automated systems in property valuation models and credit application systems may require a modest increase in CFPB’s annual funding from the Fed.

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• Sources: 
  CFPB Annual Performance Plan and Report, and Budget Overview
  CFPB at USASpending.gov

Problem #13 & Proposed Policy Solution

Climate change is damaging and threatening the housing stock through wildfires, hurricanes, floods, and excessive heat. 

Proposed Policy Solution: Invest in climate resilience strategies and disaster preparedness, including development of new wind and wildfire insurance pools modeled on the National Flood Insurance Program (NFIP). Also, expand the use of climate-resilient building codes by providing grants and financing programs to state and local governments using structures such as the HUD Community Development Block Grants or the Department of Energy’s Weatherization Assistance Program.

Policy Program Area Description & Key Budget Points

This policy response proposes providing funding, via grants, appropriations, and/or other means, to enhance climate resiliency. Implicating both housing and natural disasters, it is likely that HUD and DHS/FEMA would jointly manage resources for such a program. The policy response cites the NFIP as a model for establishing a new climate resiliency insurance program. The NFIP is managed by DHS/FEMA’s Federal Insurance and Mitigation Administration.

Key Budget and Funding Points

• By way of comparison, DHS/FEMA’s NFIP is provided between $5B - $6B in annual Congressional appropriations. 

• Climate resiliency efforts, including HUD-administered grants, to protect the national housing stock from wildfires, hurricanes, floods, and excessive heat, may or may not require similar funding.

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• Sources: 
  FY 2025 DHS FEMA Congressional Budget Justification
  FY 2026 DHS FEMA Congressional Budget Justification
  FY 2027 DHS FEMA Congressional Budget Justification