Partial shutdown looms as funding negotiations continue
**At the time of this update, negotiations for a funding compromise continue.**
Lawmakers continue to debate the terms of Fiscal Year 2019 funding for about a quarter of the federal government ahead of tonight’s midnight deadline. Although the House yesterday passed another stop-gap funding measure that would fund federal agencies – including HUD and USDA – until February 8th, the bill includes a controversial spending measure to build a wall along the southern border with Mexico. The Senate is unlikely to support the measure in its current form, leaving few options to keep the government open as more lawmakers prepare to leave town for the holidays.
After enacting appropriations for certain federal agencies before the start of the fiscal year in October, Congress had enacted two Continuing Resolutions to fund the remaining agencies at FY18 levels on a short-term basis. Although preferable to a shutdown, the limited funding levels and disruptive nature of Continuing Resolutions are harmful to NAHMA members and communities; NAHMA is therefore urging Congress and the White House to come to a full-year funding agreement as soon as possible.
In the event of a government shutdown, many HUD and USDA staff could be furloughed beginning this weekend, and agency ability to make payments on contract renewals will hinge on existing and available budget authority. Although system-generated disbursements for previously obligated rental assistance funds would initially continue, a longer-term lapse in government operations would be substantially more serious. A shutdown at midnight would be the second shutdown of 2018, with the first one occurring in late January, 2018. Prior to January, the last shutdown occurred in 2013. We will continue to monitor the situation and keep members up to date.
HUD Deputy Secretary announces resignation
This week, HUD Secretary Carson accepted the resignation of his Deputy Secretary, Pam Patenaude. The resignation letter announced her intention to resign in the new year and to return home to New Hampshire. Her resignation caps a 35-year career in housing, during which time she worked on community development, disaster recovery, and other housing initiatives. FHA Commissioner Brian Montgomery, who keynoted NAHMA’s October Meeting, will serve as acting deputy secretary while maintaining his role at the FHA.
Happy Holidays from NAHMA!
We wish everyone a safe and happy holiday season as we wrap up 2018. We look forward to another impactful year as we work together to advance affordable housing priorities across the country.