House Appropriators Plan Further Spending Cuts
This week, despite a recent agreement by House Speaker Kevin McCarthy and President Joe Biden to raise the debt limit and rein in spending, Speaker McCarthy indicated appropriators would introduce spending bills below spending caps set by the deal.
House Appropriations Chairwoman, Rep. Kay Granger (R-TX), confirmed that earlier in the week , stating she will push to slash overall discretionary spending to fiscal 2022 levels without impacting defense, homeland security or veterans programs. Rep. Granger called the Fiscal Responsibility Act’s topline spending cap for FY24 bills a spending ceiling, not a floor. Under the debt limit deal, defense spending still goes up while non-defense funding is cut from the current level. Chairwoman Granger said the approach allows for spending reductions “without shortchanging” national security (see graph below).
“The Fiscal Responsibility Act set a topline spending cap – a ceiling, not a floor – for Fiscal Year 2024 bills. That is why I will use this opportunity to mark up appropriations bills that limit new spending to the Fiscal Year 2022 topline level. In addition, by clawing back $115 billion in unnecessary, partisan programs, we will re-focus government spending consistent with Republican priorities, keeping total spending 1% lower than if we were operating under a continuing resolution. To avoid a sequester next year that would dramatically impact our military readiness and lock in Democrats’ policies, Republicans on the Committee intend to act quickly to get all appropriations bills signed into law. We’ll use the appropriations process in the House to stake out our priorities and reverse the reckless spending of the last two years.”
In previous spending deals, caps have been treated as a target to be met, though not exceeded. The Senate Appropriations Committee’s ranking member, Susan Collins, (R-ME), said that she was surprised that Speaker McCarthy was considering writing under the proposed spending caps. NAHMA will continue to monitor this situation closely.
Sen. Heinrich Introduces Bill to Combat Housing Crisis
Senator Martin Heinrich (D-NM) has recently introduced the Delivering Essential Protection, Opportunity, and Security for Tenants (DEPOSIT) Act to address the housing crisis. This legislation, if signed into law, seeks to help low-income renters overcome the barrier of security deposit payments when moving into new housing. Representative Barbara Lee (D-CA) has introduced companion legislation in the House.
“We have a serious housing crisis in New Mexico and across the country. It’s impacting everyone, at all income levels and in nearly every community. The DEPOSIT Act tackles one piece of this puzzle by focusing on the costs that come from moving into a new home,” said Sen. Heinrich. “That includes security deposits – one of the biggest barriers low-income renters face when moving into a new apartment, often required on top of two month’s rent. This legislation unlocks support to help renters overcome this barrier so their families can settle into a safe place to call home and build a foundation for a better future.”
Currently, security deposit assistance programs are inconsistent across the country, with state and local housing authorities supplementing assistance with non-profits and community organizations. The DEPOSIT Act would expand federal support for essential moving costs, like security deposits, for Section 8 voucher holders and other low-income renters. NAHMA has endorsed the DEPOSIT Act and will continue to monitor its progress.
The full text of Senator Heinrich’s DEPOSIT Act is available here. A fact sheet is available here.
House Representatives Create Renters Caucus
Last week, a group of House Democrats announced the creation of the first ever Congressional Renters Caucus aimed at addressing issues stemming from the rental crisis, such as growing demand and the limited supply of affordable housing. “The average American renter is considered rent-burdened, meaning they pay over 30 percent of their income to rent,” said Rep. Jimmy Gomez (D-CA), Chair of the Congressional Renters Caucus. “Legislatively, we’re exploring various measures to provide assistance for rent-burdened individuals, increase affordable housing options nationwide and combat discrimination against renters.”
The Congressional Renters Caucus will serve as a vital platform for legislators to collaborate, propose legislation, and engage in constructive dialogue on critical issues impacting renters. The Congressional Renters Caucus will work to expand assistance for all eligible cost-burdened renters, eliminate bureaucratic and discriminatory barriers to accessing affordable housing; and improve the quality, availability, and affordability of our nation’s rental housing stock.
Rep. Gomez’s press release is available here.