House Begins Appropriations While Senate Still in Recess
This week, with the Senate still in recess, several House Appropriations Subcommittees met for Fiscal Year 2021 (FY 21) bill markups, including for the Department of Housing and Urban Development and for Agriculture, Rural Development and the FDA. In the Senate, Republicans are working on a draft COVID-19 stimulus package with an expected cost of about $1 trillion. However, the full Senate has yet to agree on what the final cost of another round of stimulus will be and what type of assistance should be included. Republicans want liability protections for businesses open during the pandemic, while Democrats want $1 trillion in aid for local and state governments, additional unemployment benefits, and another round of individual stimulus checks. There is also disagreement on how much aid should be provided in order to assist schools that are reopening during the COVID-19 pandemic. Meanwhile, Treasury Secretary Steven Mnuchin stated this week that the White House will not back the kind of sweeping coronavirus relief it had supported in earlier bills. Secretary Mnuchin said that the President is instead opting for a much narrower aid package, with a focus on changing rather than extending the enhanced unemployment provision.
House Appropriations Subcommittee Approves Nearly $51 Billion for HUD
On July 8, the House Appropriations Subcommittee on Transportation, Housing and Urban Development passed its fiscal year (FY) 2021 funding bill for the Department of Transportation, the Department of Housing and Urban Development, and other related agencies. For FY 2021, the legislation provides $158.3 billion in base budgetary resources, and includes $50.6 billion for the Department of Housing and Urban Development (HUD). This proposed funding amount represents an increase of $1.5 billion above the FY 2020 enacted level and $13.3 billion above the President’s 2021 budget request.
The spending bill includes $34.8 billion for the Office of Public and Indian Housing, an increase of $2.4 billion above the FY 2020, with overall increases in funding for rental assistance programs.
Within this amount, $13.4 billion is included for the renewal of Project-Based Rental Assistance. The appropriations subcommittee also provides an additional $750 million for capital improvements for properties receiving Project-Based Rental Assistance, including allocating up to $250 million in grants for helping to ease the cost of mitigating threats to the health and safety of residents; reducing lead-based paint hazards, and other housing related hazards including treating for carbon monoxide, radon, or mold; improving water and energy efficiency; and reducing risks to occupants or property from natural hazards.
Additional funding for housing programs include:
- $1.6 billion for Section 202, Housing for the Elderly: The bill includes $893 million in funding to support Section 202 programs, including the renewal of approximately 1,600 existing service coordinator grants, provides an extension of the Supportive Services IWISH Demonstration and fully funds renewals and amendments of PRACs (Project Rental Assistance Contracts). On top of the $893 million, the subcommittee includes an additional $750 million for new Section 202 housing for the elderly homes.
- $406 million for Section 811, Housing for Persons with Disabilities: The bill includes a base fund of $227 million for Section 811 properties, with an additional $179 million to bolster community development through investments in public affordable housing.
- $25.8 billion for The Housing Choice Voucher: This represents an almost $2 billion increase from last year’s level.
- $19.2 billion for The HOME Investment Partnerships Program: $1.7 billion is included for FY 2021, with an additional $17.5 billion included to support economic recovery from the coronavirus pandemic. The President’s FY 2021 budget request proposes eliminating this program.
- $835 million for Native American Programs: This represents an increase of $10 million from the previous year.
- $3.5 billion for the Community Development Block Grants: An increase of $100 million from last year’s level.
The full House Appropriations Committee is expected to consider the Transportation, Housing and Urban Development spending bill next week. The Senate Appropriations Committee has yet to schedule a date for consideration of their FY 2021 HUD funding bill. To view the full text of the bill, click here. To view a section-by-section summary of the housing provisions, click here.
House Appropriations Committee Releases Draft Agriculture and Rural Development Funding Bill
On July 5, the House Appropriations Committee released the first draft of the fiscal year 2021 (FY) Agriculture-Rural Development-FDA Funding Bill which provides $23.98 billion in discretionary funding for rural development and infrastructure, food and nutrition programs, and other food assistance programs. This topline number represents an increase of $487 million above the FY 2020 enacted level. The legislation provides key appropriations for rural affordable housing and community development such as rural housing loans and rental assistance.
The FY 2021 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies funding bill allocates $1.45 billion to the Section 521 Rural Rental Assistance program for rental vouchers and all existing rental assistance contracts for the elderly and low-income families in rural communities. This represents a slight increase over the $1.375 billion allocated to the Section 521 program in FY 2020. The bill also provides a total of more than $4.214 billion for rural development programs, which help create economic growth by providing business and housing opportunities and building sustainable rural infrastructure for the modern economy. To view the full text of the FY 2021 Agriculture funding bill, click here. To view a section-by-section summary, click here.
Supreme Court to Rule on Fannie Mae, Freddie Mac
On July 9, the U.S. Supreme Court agreed to hear arguments in a legal battle between the Trump administration and shareholders in Fannie Mae and Freddie Mac that could determine whether the Treasury Department can continue taking profits from the government sponsored enterprises currently under government conservatorship. The Supreme Court indicated that it will hear the administration’s appeal to a lower court ruling that called into question the constitutionality of Fannie Mae’s and Freddie Mac’s regulator, the Federal Housing Finance Agency, and its ability to make profit. The Supreme Court stated it will take up the case in early October when it resumes hearing arguments.