Treasury Secretary Testifies Before Senate Finance Committee
Treasury Secretary Janet Yellen testified this week at a hearing before the U.S. Senate Committee on Finance on the President’s fiscal year 2023 budget for the Department of Treasury. During her testimony, Secretary Yellen stated bringing down inflation is the President’s number one priority and discussed efforts to get inflation under control without sacrificing the economic gains made so far. She discussed how, due to the efforts made by the Biden Administrations, the nation averted far worse outcomes that were forecast at the beginning of the pandemic in 2020, according to Sec. Yellen. “During the onset of the pandemic, the Congressional Budget Office had forecast unemployment would exceed 9 percent in 2021. While the current unemployment rate is slightly above 3 percent.” she said during her opening statement. The Secretary, however, highlighted the need for Congress to continue to work together to find additional ways to mitigate some of the most important and burdensome costs that households face, such as finding affordable housing or paying for prescription, while also raising revenue for the government. “Lowering the costs and easing the price pressures that low- and middle- income households are facing due to rising energy and food costs, addressing the supply chain problems that have been associated with the pandemic and continuing deficit reduction measures would complement the work that the Federal Reserve is doing.” she testified.
During the hearing the Committee discussed efforts to increase affordable housing production. Senator Catherine Cortez Masto (D-NV) described the need for Treasury to align the low-income housing tax credit (LIHTC) with state and local fiscal relief funds provided by the American Rescue Plan. Specifically, Sen. Cortez Masto stated that “by aligning LIHTC with state and local fiscal relief funds, that’s the difference between building 3,000 units and 8,000 units in my state. I have introduced the Lifeline Act which allows state and localities to loan the state and local fiscal relief funds to LIHTC projects. The loan authority is necessary because of the obligation to spend all of the state and local fiscal relief funds by 2026. That’s my first priority, to pass that.” Sen. Cortez Masto requested that the Treasury Department clarifies this point in its final rule and allows those types of loans, whether they’re blended loans or grants to nonprofits that provide loans. “Just clarifying through your rules that those funds can be used in that way, that will help us build these more affordable homes in my state and across the country.” said Sen. Cortez Masto.
To view the full Senate Finance Committee hearing, click here. To read Treasury Secretary Yellen’s Opening Testimony, click here.
Senators Seek Input from Public on Rural Housing
Senators Tina Smith (D-MN) and Mike Rounds (R-SD), Chair and Ranking Member of the Senate’s Housing, Transportation, and Community Development Subcommittee, issued a request for input from stakeholders on Rural Housing Service programs. Last month, the Subcommittee held a hearing to review the Rural Housing Service, with Under Secretary for Rural Development Xochitl Torres Small as the witness. The hearing was the first time a U.S. Department of Agriculture official had testified before the Senate Banking and Housing Committee in more than a decade. Smith and Rounds’ hearing focused on ways to improve the agency’s rural housing programs and both Senators are now requesting proposals from rural housing residents, housing advocates, community leaders, development experts, and other stakeholders. NAHMA may submit recommendations from members if they are received by July 1st, 2022.
To view the official press release, click here.
Treasury Provides April ERA Update
This week, the Treasury Department provided an update report on the Emergency Rental Assistance (ERA) spending data through April 2022. Specifically, ERA grantees spent approximately $1.1 billion of ERA2 and $563 million of ERA1 in April, compared to $1.4 billion of ERA2 and $714 million of ERA1 spent in March 2022. The report also shows that state and local ERA grantees had disbursed or obligated approximately $17.54 billion in ERA1 funds and $8.87 billion in ERA2 funds. Overall, $28.5 billion of ERA1 and ERA2 have been spent on household assistance, administrative expenses, and housing stability services and the ERA program has made nearly 5.6 million payments to households since January 2021.
To view Treasury’s April 2022 ERA Report, click here.