Federal Budget Update

Categories: Funding, Federal


The largest cuts in housing assistance since the Reagan administration.

On March 16th, President Trump released a budget blueprint that proposes $6.2 billion in cuts to HUD funding. Overall, these cuts represent a 13.2% decrease in funding compared to FY16 levels: the largest cuts in housing assistance since the Reagan administration, which ushered widespread homelessness. These cuts are unacceptable and we are committed to fighting them.

The Trump budget eliminates the following programs:

The HOME program is a critical resource for supportive housing in New York, serving as a capital subsidy for congregate developments, as well as providing rental assistance to the homeless. Nationwide, every $1 of HOME capital funding leverages $4.20 of additional local public and private funding. Community Development Block Grants (CDBG) fund cities and towns across the state for capital projects and programs benefiting low- and moderate-income New Yorkers.

The budget blueprint presents questions: it outlines $4.1 billion in spending cuts but leaves the remaining $2.1 billion unexplained. According to the document released by the White House, the president’s budget “provides over $35 billion for HUD’s rental assistance programs and proposes reforms that reduce costs while continuing to assist 4.5 million low-income households.” It is unclear at this time how funding will be spread out over various voucher programs and where exactly cuts will be felt. The budget is also silent on Homeless Assistance, known as McKinney Vento funding.

The president’s budget does eliminate the US Interagency Council on the Homeless, which is charged with coordinating across the federal government to end homelessness.

Dr. Ben Carson was sworn in as HUD Secretary on March 2nd. He has started his “listening tour” across America. The Network, along with our fellow advocates, has invited him to New York to witness firsthand the success of our affordable and supportive housing programs and the devastating impacts these cuts would have.

The president’s proposal is subject to Congressional approval. The Network will be in Washington D.C. in early April with the National Low Income Housing Coalition, advocating for programs critical to supportive housing to members of the House and Senate. We will keep you posted as opportunities arise for you to participate directly in advocacy.

Please see our Executive Director Laura Mascuch's opinion piece in City and State's Slant.

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