The House and the Senate have both appointed Members to a conference committee of 29 to work on a Budget Resolution that will outline federal spending for fiscal year (FY) 2014.
The self-imposed deadline for lawmakers to craft the Budget Resolution is Friday, December 13, 2013, as set in the October 17, 2013 legislation that funded the government and delayed the debt ceiling.
This task will require members of the conference committee from both political parties to reach a compromise between the different funding levels included in earlier House and Senate FY 2014 Budget Resolutions. Negotiations will involve various strategies to reduce the nation’s deficit and could potentially address sequestration for FY 2014 spending or beyond.
The total spending level determined will impact the amount of funding that will be available to fund various government programs, including the Department of Housing and Urban Development (HUD) homelessness and affordable housing programs. If Congress fails to reach a deal by January 15, when the current continuing resolution (CR) expires, the topline appropriations number will be cut, in accordance with the Budget Control Act of 2011.
The conference committee is expected to hold their first meeting on Wednesday, October 30, 2013.
Federal Housing Administration Bailout
On October 29, 2013, the House Financial Services Committee held a hearing on the bailout of the Federal Housing Administration (FHA). The hearing explored the health of the FHA’s Mutual Mortgage Insurance Fund (MMIF) and the implications of the FHA’s announcement that it will require $1.7 billion in mandatory appropriations from the U.S. Treasury.
In her testimony, Carol Galante, Commissioner of the Federal Housing Administration, emphasized the important role the FHA has played in supporting the housing market and broader economy. She also explained that the appropriation was necessary to ensure that at the end of FY 2013, the MMIF has sufficient funds in its capital reserve account to cover all expected future losses.
Click here for the webcast, memorandum and testimony from the hearing.