Two-Thirds of Budget Cuts Impact Low or Moderate Income People

Senate and House Budget Committee
Maintain Sequester Spending Caps for FY16

Two-Thirds of Budget Cuts Impact Low or Moderate Income PeopleOn March 19, 2015, the Senate and House Committees on the Budget passed their respective FY16 budget resolutions on party line votes.

The two budget resolutions now head to the Senate and House chambers for consideration during the week of March 23, 2015.

While there are many differences between the two resolutions, they have common characteristics that would be damaging to housing programs.

  • The Senate and House FY16 budget resolutions would maintain the sequestration spending caps for domestic discretionary spending, which will result in flat funding compared to FY15 levels.
  • Both budget resolutions, which provide budget guidelines over the FY16 to FY25 time frame, would lower the sequestration spending caps in FY17 through FY25, resulting in even deeper spending cuts.
  • The House budget resolution would reduce the sequester caps for discretionary spending by $759 billion over these years, while the Senate’s bill would lower caps by $236 billion.

According to the Center for Budget and Policy Priorities (CBPP), the budgets:

  • Get 69% of their cuts to non-defense spending from programs that serve people of limited means.
  • This information depicts the striking imbalance of the House and Senate budget plans. They turn a blind eye to the principle that the nation’s fiscal problems should not be addressed by imposing more hardship on the poorest and most vulnerable Americans.
  • The budget plans ignore other alternatives to reducing the deficit, most notably by failing to reduce the more than $1 trillion a year in tax expenditures, which disproportionately benefit high-income households.
  • They thereby ignore the seemingly widespread consensus that has emerged of the importance of advancing shared prosperity. If these proposals are enacted, the damage to low- and moderate-income families and individuals will be substantial.
  • Given the wide disparity in the level of cuts between the two budget resolutions, it will be difficult for the two chambers to reconcile the differences and come up with a unified budget resolution.

Click here for the Senate Budget Committee’s budget resolution.

Click here for the House Budget Committee statement.

Click here for more information from the National Low Income Housing Coalition (NLIHC.)

Click here for CBPP’s report on the committee budgets.