Democratic Policy and Communications Committee Responds to Potential Government Funding Cuts
Responding to House Speaker Kevin McCarthy’s (R-CA) potential plans to cap the Fiscal Year 2024 government funding bill at the Fiscal Year 2022 level, the Democrat Policy and Communications Committee chaired by Sen. Debbie Stabenow (D-MI), released an outline of what the cuts would mean in real terms for programmatic funding. Speaker McCarthy has previously stated his intention to tie any discussions of extending the nation’s debt ceiling to a reduction in federal spending for FY24. The Committee responded by highlighting how such a proposal would result in an average cut of 12-percent to all federal programs in inflation adjusted terms, including for HUD and USDA programs. Alternatively, if defense funding grows with inflation – and VA medical care is funded next year at the level already required by law – and still maintain the same overall spending cut, it would amount to a 30% cut to all other federal programs.
As Table 1 shows below, the proposal would cut defense discretionary spending by $76 billion, or 8.9%, not including additional cuts in purchasing power due to the effects of inflation. For nondefense discretionary spending, funding would be cut by 11.8%, not including inflation.
The document highlights what these reductions would mean for HUD programs:
- Rental and Homeless Assistance: The proposal envisions reducing HUD’s funding by $6.6 billion. These cuts would force local Public Housing Authorities to immediately pull existing vouchers from families searching for units or sever assistance altogether.
- HOME Investment Partnership Program: These cuts would result in at least 1,700 fewer new affordable housing units being constructed and 1,300 fewer low-income households receiving rental assistance.
- Lead Hazard and Hazard Abatement: The proposal cuts $48 million in funding to address lead and other health hazards in low-income homes, resulting in 3,000 fewer homes completing lead and hazard abatement programs.
NAHMA will continue to monitor this situation closely while opposing any similar proposed cuts and the potential of harsh caps on spending.
To view the Democrat Policy and Communications Committee publication, click here.
Who to Contact for Affordable Housing Policy in the 118th Congress
The latest NAHMAnalysis, 118th Congress Who to Contact for Affordable Housing Policy, is now available. This NAHMAnalysis is a simple primer on the key Congressional members and committees that will likely impact affordable housing policies before the 118th Congress.
To view the NAHMAnalysis: 118th Congress Who to Contact for Affordable Housing Policy, click here.