The fiscal year 2020 budget proposal released today by the Trump Administration would deal a critical blow to affordable housing programs that serve communities across the country. In total, the Trump budget would cut funding for the Department of Housing and Urban Development (HUD) by $8.6 billion and incorporates policy changes to enforce work requirements on residents living public housing and other HUD assisted housing.
As the adage goes, "the President proposes; Congress disposes." This is the third consecutive year that President Trump has suggested drastic cuts to housing programs, and so far Congress, even under Republican leadership, has rejected the Administration’s proposed budget cuts.
The public housing capital fund, which was funded in FY2019 at $2.775 billion, would be completely eliminated and the operating fund would be cut by 38%. Instead, the Administration proposes $100 million for the Rental Assistance Demonstration (RAD) program. RAD helps preserve and modernize public housing by allowing housing authorities to raise private debt and equity. The president also included a RAD preference for developments located in Opportunity Zones. Opportunity Zones is a new tax incentive for private investment in designated low-income areas.
Under the Administration’s proposal, tenant-based and project-based rental assistance would be funded at levels that would not ensure contract renewal ($22.2 billion and $12 billion, respectively).
The National Housing Trust Fund would be eliminated, along with community development resources like the Community Development Block Grant (CDBG) program, the HOME Investment Partnership Program, Choice Neighborhood Grants, and the Section 4 Capacity Building Program.
To read more, check out the National Low-Income Housing Coalition’s full budget analysis.