Congress Passes 9-Week Government Funding Bill
This week, Congress passed a short-term continuing resolution to fund the federal government through and President Biden signed the legislation on Thursday. Under a continuing resolution, funding levels remain set at the previous year’s levels, which can limit the ability of governmental agencies to pay for and start new programs. However, NAHMA does not expect any disruptions to affordable housing programs. The short-term funding bill also includes $28.6 billion in emergency post-disaster aid for communities recovering from major disasters this year, including for Hurricane Ida, wildfire mitigation and drought resiliency. $5 billion was also included for HUD Community Development Block Grants for recovery from disasters that occurred in 2020 and 2021. To combat recent flooding disasters, $3 billion is provided to accelerate construction of U.S. Army Corps of Engineers flood and storm-damage reduction projects. Half of that $3 billion is allocated to states with declared major disasters from Ida, and those grants can be used to restore housing and infrastructure, as well as for economic recovery and mitigation work. Additionally, a portion of the bill provides relief for the recent survivors of wildfires and other natural disasters, as well as for farmers who lost crops due to wildfire and smoke damage. $1.36 billion is provided to the Forest Service to deal with consequences of wildfires and to address the shortage of federal wildland firefighters and $400 million is provided for water infrastructure projects to help western states experiencing severe drought. The continuing resolution will expire on December 3, 2021, at which time Congress will need to achieve agreement and finish negotiations on a final year bill to fund government agencies through fiscal year 2022.
Secretary Yellen and Chairman Powell Testify on COVID-19, Debt Limit, and Rising Inflation
Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell testified before two congressional committees this week, providing updates on COVID-19 pandemic recovery efforts, the emergency rental assistance program, the need to increase the government’s borrowing limit and rising inflation concerns. During her testimony before the Senate Banking, Housing and Urban Affairs Committee and the House Financial Services Committee, Secretary Yellen stated that Congress rightly designed the state and local emergency assistance programs with flexibility in mind to mitigate against unforeseen challenges. She also reiterated that prior to the pandemic, there was essentially no national infrastructure to get money from government accounts to renters and housing providers and that building such infrastructure has been a massive undertaking for states and localities.
COVID-19 and Emergency Rental Assistance
Secretary Yellen noted that the Emergency Rental Assistance program is scaling up quickly, with 1.4 million payments made to help struggling renter, but also acknowledged that too much of the funding remains bottlenecked at the state and local levels. To date, only about $8 billion of the $46 billion of emergency rental assistance has reached those most in need. When members of the committee raised their concerns regarding the slow disbursement of the emergency funds, Secretary Yellen stated that Treasury will continue to work to eliminate every piece of red tape possible to ensure more payments can get to renters and housing providers. But she also added that states and localities must also work to remove barriers that can speed up distribution of rental assistance funds. Chairman Powell also underscored the need for emergency rental assistance and relief programs during his testimony, stating that the economic downturn has not fallen equally on all Americans, and those least able to shoulder the burden have been the hardest hit. In particular, he noted, joblessness continues to fall disproportionately on lower-wage workers in the service sector and on African Americans and Hispanics.
Debt Ceiling
Chairman Powell and Secretary Yellen also detailed how the federal government would be unable to keep paying its bills on time unless Congress raised or suspended the federal debt ceiling by October 18. After that date, the U.S. could default on its debt, potentially triggering a financial tailspin that would plunge the U.S. economy into a recession.
Rising Inflation
Separately, when discussing concerns associated with the rising price of consumer products, including cars, food and other everyday goods, Chairman Powell maintained that high inflation is a temporary feature of the economic recovery and is largely tied to supply chains that need more time to clear.
To view the Senate Banking Housing and Urban Development Committee hearing, click here.
To view the House Financial Services Committee hearing, click here.
Senators Introduce Bill to Combat Lead Exposure in Section 8 Housing
Senators Marco Rubio (R-FL), Bill Hagerty (R-TN), and Raphael Warnock (D-GA) introduced S. 2746, the Keep Children and Families Safe from Lead Hazards Act, which would direct the HUD to identify and remediate risk exposure to lead hazards, including lead wall paint and lead drinking water service lines, in Section 8 housing programs. Specifically, the legislation would direct HUD to:
- Conduct an annual risk assessment of Section 8 housing programs to identify risk exposure to lead hazards,
- Develop an action plan to remediate lead hazards,
- Require that lead hazards become a graded factor in Uniform Physical Condition Standards (UPCS) inspections,
- Require an annual report to Congress on all Section 8 properties with lead hazards that are home to children under the age of six.
Senator Rubio, the lead sponsor of the legislation, stated that the bill is needed now more than ever after discovering this past May that 29 HUD properties in Florida failed inspection — adding that the Government Accountability Office reports over 6,300 children under the age of six currently live in 205 out of 562 Florida HUD properties that expose residents to lead. S.2746 has been referred to the Senate Committee on Banking, Housing and Urban Affairs Committee for further consideration. NAHMA will monitor this bill as it moves through the legislative process.
To view the full bill text, click here.