The Trump administration is once again proposing to eliminate or reduce key housing programs in its fiscal 2020 budget proposal.
The approximately $44.1 billion spending plan for the Department of Housing and Urban Development (HUD) is about $9.6 billion, or 18%, below the fiscal 2019 enacted level.
Here are 10 key takeaways:
· The HOME Investment Partnerships program would be eliminated. No funding is proposed for HOME, which received $1.25 billion in fiscal 2019;
· The Community Development Block Grant program would be eliminated. No funding is proposed for the grants, which received $3.3 billion in the final 2019 budget;
· The National Housing Trust Fund, which was authorized by the Housing and Economic Recovery Act of 2008, would be eliminated. The president’s budget seeks to eliminate the assessments on Fannie Mae and Freddie Mac that support the Housing Trust Fund. HUD anticipates receiving approximately $245 million from the calendar year 2018 collection, which will be distributed to the states in fiscal 2019;
· The Choice Neighborhoods Initiative would be eliminated after receiving $150 million in the last budget;
· The public housing capital fund would be eliminated. No funding is proposed for the fund, which received $2.78 billion in fiscal 2019;
· The public housing operating fund would receive $2.86 billion, a reduction from $4.65 billion in fiscal 2019;
· Homeless Assistance Grants would receive nearly $2.6 billion, a roughly $37 million cut from the $2.64 billion received in fiscal 2019.
· The tenant-based rental assistance program would receive $22.2 billion under the proposal, a reduction from nearly $22.6 billion;
· Project-based rental assistance would receive $12 billion, an increase from about $11.7 billion; and
· The Rental Assistance Demonstration (RAD) program would be funded at $100 million. Plus, HUD requests that the cap of 455,000 units be eliminated, allowing any public housing property that could convert under RAD to do so.
The administration has proposed many of the same cuts in the past, but Congress has largely rejected those moves.