Trump Plan Slashes HUD Budget by $6.2 Billion

CDBG, HOME, Choice Neighborhoods would be eliminated; rental assistance cut.

Community Development Block Grants, the HOME program, and the Choice Neighborhoods initiative are all eliminated in President Donald Trump’s budget proposal released today.

The new administration’s fiscal 2018 blueprint slashes funding for the Department of Housing and Urban Development (HUD) by $6.2 billion, or 13.2%, from current levels, with the agency receiving $40.7 billion in gross discretionary funding.

Industry Reaction to Budget Blueprint

"The proposed budget would upend efforts by hard-working low-income families who put forth sweat equity to construct their own modest homes. It eliminates clean water and sewer investments which are essential to poor rural and tribal communities. The elimination of HOME and CDBG programs would undermine local efforts to provide decent housing, community facilities, and a foundation for economic development in rural communities. And de-funding national rural capacity building programs sends a stark message to the private sector: Rural America is not worthy of investment." Moises Loza, executive director, Housing Assistance Council

"We are in the midst of an undisputed housing crisis. If HUD’s budget is cut, the housing crisis will get worse. HUD’s current budget is too low to address the country’s current housing needs. Today, only one out of every four households who needs housing assistance gets it; more than one in four renters pays more than half of their income on housing costs; and nationwide waiting lists for affordable housing are years long. Many aren’t even open to new applicants, the backlog is so enormous. We must ask ourselves: What happens to these people?" Jane Graf, president and CEO, Mercy Housing

“Simply put, these proposed cuts are devastating. Walking away from 400,000 New Yorkers that call NYCHA home, the federal government takes direct aim at the quality of life of our residents. The Trump administration has proposed drastic cuts to HUD, which would strip nearly every dollar from public housing infrastructure and completely undermine its day-to-day operations. We refuse to let Washington walk away from public housing. We will vigorously fight any and all cuts that jeopardize the future of public housing in this city.” Shola Olatoye, chair and CEO, New York City Housing Authority

"These budget cuts would have a devastating impact on millions of the lowest income people across the country. More than 200,000 seniors, families, and people with disabilities will be at immediate risk of evictions and homelessness, and local communities will be starved of the funding they need to build and repair affordable homes and revitalize distressed communities." Diane Yentel, president and CEO, National Low Income Housing Coalition

“Programs like rental assistance and CDBG are about more than just development. Living in an affordable, healthy home directly affects the ability of children to succeed in school and the health of older adults and people with disabilities. Access to quality stable homes is a key component of reducing health care costs, especially in Medicare and Medicaid. We look forward to joining our colleagues in housing and community development to work with members of Congress to ensure the final HUD and Agriculture budgets better meet the needs of our communities.” Chris Estes, president and CEO, National Housing Conference

There are also major cuts to public housing and rental assistance programs that millions of low-income families and seniors rely on to meet their housing needs. (Read more about potential cuts to public housing programs.)

In addition, funding for the U.S. Interagency Council on Homelessness and the Neighborhood Reinvestment Corp., better known as NeighborWorks America, would be eliminated.

Affordable housing advocates expected a grim budget after an early copy was leaked, but they hoped that the proposal would be much improved before today’s release. Instead, the budget maintains the anticipated cuts that housing leaders say will devastate families and communities across the country.

“If enacted, Trump’s proposed budget would result in the most severe cut to HUD since President Reagan dramatically reduced funding in the early 1980s,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition. “Reagan’s deep spending cuts ushered in a new age of homelessness with a dramatic increase in the number of people sleeping on the streets, in cars, and in shelters. Years after those shortsighted and devastating cuts, a major infusion of resources was needed for homeless shelters and services. President Trump seems eager to follow in Mr. Reagan's footsteps, repeating his mistakes and working to make America homeless again.

“More than 200,000 seniors, families, and people with disabilities will be at immediate risk of evictions and homelessness, and local communities will be starved of the funding they need to build and repair affordable homes and revitalize distressed communities,” continued Yentel.

The proposal would also cut additional housing and community development funds from the Department of Agriculture and the Department of the Treasury, pointed out the National Housing Conference (NHC). The budget blueprint also eliminates funding for the Treasury’s Community Development Financial Institutions (CDFI) Fund grants.

“President Trump’s budget for HUD would severely limit the ability of state and local governments to meet their communities’ housing and infrastructure needs,” said Chris Estes, president and CEO of NHC, a nonpartisan affordable housing advocacy organization. “The president’s proposed budget sacrifices the security of older adults and people with disabilities, and will actually make it harder for President Trump to bring opportunity to urban and rural America as promised.”

HUD said a more detailed program-by-program budget proposal will be announced in May. Congress will also draft its budget plans.