Trump Proposes $6.2 Billion Budget Cut to HUD

Filed in Capitol Hill by on May 23, 2017 0 Comments

President Trump today proposed a $4.09 trillion budget request for fiscal 2018, which begins on Oct. 1. The plan would slash HUD funding by $6.2 billion, or 13%, to $40.7 billion, and includes billions of dollars of cuts to other Cabinet agencies to help offset a proposed $54 billion increase in defense spending.

It’s important to note that no White House budget is ever approved “as is” by the Congress. Given the scores of key housing and other domestic programs that Trump proposes to cut or eliminate, the ensuing appropriations process is expected to be drawn out and contentious as lawmakers on both sides of the aisle debate the budget’s merits on an array of fronts — from taxes, to energy policy to social spending.

Final spending allocations approved by Congress later this year are likely to be much different that the White House blueprint. Throughout the process, NAHB will remain engaged and work with lawmakers to fund vital housing programs at the highest possible level.

Of note to the residential construction community, the White House budget would eliminate the HOME Investment Partnership (HOME), Community Development Block Grant (CDBG) and Choice Neighborhood programs. It also discontinued funding for the Housing Trust Fund, an affordable housing production program funded by Fannie Mae and Freddie Mac profits.

HOME received $948 million in funding for 2017. The program is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. Many multifamily builders often use the HOME program to fund developments in conjunction with the Low Income Housing Tax Credit.

The CDBG program, which provides communities with resources to address a wide range of urban renewal projects, received $3.2 billion in funding for 2017.

Moreover, the administration is proposing cuts to the Housing Choice Voucher and Project Based Rental Assistance Renewal accounts, and calling for increased tenant contributions toward their rent.

For more information, contact Jessica Hall at 800-368-5242 x8253 or David Logan at x8448.

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