HUD Bill Avoids Deep Cuts in 2008: President’s Veto Threat Risks Loss of Housing Assistance for Low-Income Families

Publication Date: November 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Douglas Rice; Will Fischer; Barbara Sard

Research Area: Banking and finance

Keywords: Economic projections; Federal budget; Income diversity; Affordable housing

Type: Report

Abstract:

Congress is expected to approve soon an appropriations bill (H.R. 3074) to fund programs administered by the Departments of Housing and Urban Development (HUD), Transportation, and a few smaller agencies. The President has threatened to veto this and other domestic appropriations bills that do not contain the level of funding cuts requested in his budget. To reduce the Transportation-HUD bill down to the President’s proposed level, $3 billion would have to be cut from Congress’ bill. The President’s budget and the Transportation-HUD appropriations bill differ primarily with respect to funding levels for key low-income housing and related programs. The President’s budget would cut funding for HUD programs by $2.3 billion, or 6.1 percent, below the 2007 level, adjusted for inflation. Congress’ bill would increase funding by $576 million (or 1.5 percent) above the inflation-adjusted 2007 level. Nearly all of the difference in HUD funding consists of funding increases needed to prevent substantial cuts in housing assistance for large numbers of low-income families and people who are elderly or have serious disabilities and in community development funding for states and localities.