The budget proposal unveiled on Friday is not binding, but it sets a tone for the upcoming discussions between President Donald Trump, his allies in Congress, and the public. With the current government funding deadline set for Sept. 30, Congress must pass a funding package to avoid a government shutdown.
Proposed HUD Cuts
The most significant cut proposed for HUD is aimed at the State Rental Assistance Block Grant program, which would see a reduction of $26.7 billion across various programs such as tenant-based rental assistance, public housing, project-based rental assistance, and housing for the elderly and disabled.
The budget aims to empower states by converting the current federal rental assistance programs into a state-based formula grant, allowing states to tailor their rental assistance programs to their specific needs. It also proposes a two-year cap on rental assistance for able-bodied adults and prioritizes funding for the elderly and disabled through states.
Other proposed cuts include the elimination of the Community Development Block Grant (CDBG) program, the HOME Investment Partnerships Program, Native American and Native Hawaiian housing assistance block programs, homeless assistance programs, lead hazard reduction funding, self-sufficiency programs, and fair housing grants.
HUD and Organization Responses
HUD Secretary Scott Turner praised the budget proposal for providing states and localities with more flexibility while streamlining existing programs to better serve the American people. He emphasized the need for partnerships and collaboration between different levels of government.
However, reactions from housing advocates varied. The Community Home Lenders of America (CHLA) expressed the need for more details before forming a definitive opinion. The National Housing Law Project (NHLP) criticized the budget for cutting essential programs that support low-income individuals and families.
NHC: Budget Proposal Outlook
David Dworkin, the president and CEO of the National Housing Conference (NHC), described the budget proposal as draconian but suggested that it is unlikely to gain traction. He warned that the proposed cuts could lead to a homelessness crisis and financial struggles for property owners reliant on Housing Choice Vouchers.
Dworkin highlighted the challenges of passing such drastic cuts in Congress, especially considering the growing concerns around housing affordability. He noted that while the HUD budget may face reductions, lawmakers will need to balance fiscal responsibility with meeting the needs of their constituents.
Ultimately, Dworkin emphasized the importance of practical considerations in shaping legislation, where ideological beliefs must align with the real-world impact of budget decisions.