Senate Subcommittee Holds Hearing
On March 10, 2016, the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD) held a hearing on HUD’s FY17 budget request. HUD Secretary Julián Castro and HUD Inspector General David Montoya testified.
In her opening remarks, Subcommittee Chair Susan Collins (R-ME) said that HUD’s request is nearly $2 billion more than its FY16 funding level, a request that “does not exist in a vacuum and must be considered in the broader context of an unstable $19 trillion debt.”
Senator Collins noted that while the Office of Management and Budget (OMB) expects FHA receipts, which are used to offset HUD appropriations, to be $2.8 billion above FY16 levels, the Congressional Budget Office’s (CBO) “baseline score for fiscal year 2017 is more than $400 million below current levels and $2.7 billion below the OMB’s assumption, an enormous discrepancy.”
She said the subcommittee should assume lower receipt levels as a precaution until CBO finishes scoring the president’s budget request.
“Today, a quarter of American renters spend more than half of their incomes on housing. And too many families are forced to cut back on food, on health care, and other basic necessities just to put a roof over their head. That’s why the President’s Budget proposes to increase HUD’s funding to $48.9 billion, $1.9 billion over the enacted level for Fiscal Year 2016.”
Secretary Castro said about the Administration’s request for increased HUD funding