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.