Programs that have been the backbone of affordable housing and community development would be eliminated under President Donald Trump’s proposed 2018 budget released today.
As expected, the longstanding Community Development Block Grant (CDBG) and HOME programs receive no funding in the budget request.
Plans to eliminate the popular programs became known in the “skinny budget” that came out in March. The release of the administration’s budget proposal confirms those plans, which local leaders and housing advocates say would devastate communities and millions of low-income people across the country.
“We’re not talking about marginal cuts here,” says Chris Estes, president and CEO of the National Housing Conference. “The budget proposes complete elimination of federal help that communities big and small rely on. Homeownership investments, rental vouchers, community development investments in rural towns and urban neighborhoods—this budget would be catastrophic for all of these investments.”
Others agree that the proposal would cut wide and deep.
“This budget, if enacted, would deal devastating blows to some of the most vulnerable people in our communities,” says Matthew Chase, executive director of the National Association of Counties. “The impact of (the) proposed budget cuts is real for our residents, especially elderly citizens, people with disabilities, and children. The proposed budget would strip them of any safety net—from heating assistance to workforce training to child services.”
Overall, the Department of Housing and Urban Development (HUD) gross discretionary budget would be slashed by about $8 billion from 2017 Continuing Resolution (CR) levels. The agency would have approximately $40.7 billion in gross discretionary funding, a decline from $48.7 billion in 2017.
In addition to eliminating CDBG and HOME, the administration also seeks to kill the Choice Neighborhood Initiative, and the National Housing Trust Fund.
Mayors and others leaders have vowed to fight the budget cuts.
The administration also proposes:
· Reducing the Sec. 8 housing choice voucher program to $19.3 billion, down from the $19.6 billion fiscal 2017 annualized CR level;
· Increasing the Sec. 8 project-based rental assistance program to $10.8 billion, up from the $10.6 billion 2017 CR level;
· Reducing the public housing capital fund to $628 million, down from the $1.9 billion 2017 CR level;
· Reducing the public housing operating fund to $3.9 billion, down from the $4.5 billion 2017 CR level; and
· Supporting the Rental Assistance Demonstration program by removing the 225,000-unit cap on public housing units that can convert to long-term Sec. 8 assistance under the program.
“The release of today’s full budget confirms the devastating blow this budget would land on millions of low-income people throughout the country, in a transparent effort to pay for tax cuts for the wealthy and increase defense spending,” says Diane Yentel, president and CEO of the National Low Income Housing Coalition.
HUD Secretary Ben Carson said the "budget reflects this Administration’s commitment to fiscal responsibility while continuing HUD’s core support of our most vulnerable households."
Carson added that the department will "work with Congress to support the critical work of our agency as we vigorously pursue new approaches to help work-eligible households achieve self-sufficiency.”
