President Trump’s First Budget Could Cripple Affordable Housing

15% Cut to HUD Funding Could Devastate Voucher Funding, Homeless Assistance and Other Critical Affordable Housing Programs

On March 6, 2017, the Campaign for Housing and Community Development Funding held a webinar, “How President Trump’s First Budget Could Impact Affordable Housing.”

The webinar included a budget overview, potential effects on affordable housing programs, and opportunities for advocacy.

The President’s budget brief is expected to be released on Thursday, March 16, 2017. President Trump has proposed to increase defense funding by $54 billion in fiscal year (FY) 2018, and cut non-defense discretionary (NDD) programs by an equal amount.

This would lower the FY 2018 NDD cap by 11%; after accounting for veterans’ health increase and excluding homeland security, other program cuts would be 15%.

There is not yet a budget proposal for the U.S. Dept. of Housing and Urban Development (HUD) budget but a 15%, $7.1 billion, cut would have devastating consequences for affordable housing.

On the webinar, Doug Rice, Senior Policy Analyst with the Center on Budget and Policy Priorities (CBPP) shared that:

  • A 15% rental assistance cut to the HUD budget would eliminate 625,000 housing vouchers and project based Section 8 units and additional units in other programs and
  • If Congress chose to protect families using rental assistance, the remainder of HUD budget would have to be eliminated to absorb a 15% HUD budget cut

Steve Berg, Vice President for Programs and Policy with the National Alliance to End Homelessness shared that the effects of a possible 15% cut in fiscal year (FY) 2018 for homeless grants would mean:

  • A $360 million reduction for the year,
  • No newly homeless people would be housed (down from approx. 200,000 people housed a year), and
  • That, alternatively, 50,000 formerly homeless people now in permanent housing would lose their subsidies.

Elayne Weiss from NLIHC moderated the event. Speakers include:

As background, the Budget Control Act of 2011 caps forced housing and community development cuts. Under the Budget Control Act of 2011 cap on non-defense discretionary (NDD) spending, annual funding for HUD and USDA housing and community development programs has declined $4.7 billion (8.6%) from 2010 to 2016 (adj. for inflation)

  • Public housing and block grants have seen the deepest funding cuts
  • Sequestration caused the loss of housing vouchers for more than 80,000 households in 2013 and 2014, but PHAs restored these vouchers in 2015 and 2016

The Campaign for Housing and Community Development Funding works to ensure maximum federal resources for housing and community development.

PowerPoint Slides from the Webinar

Webinar Video

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