House appropriators have voted to slash the budget of the Department of Housing and Urban Development, which could led to a budget fight this fall and possible interruption in HUD programs.
Last Thursday, the House Appropriations Committee voted 28-20 to cut funding for the Housing and Transportation departments to $44.1 billion in fiscal year 2014, down 17% from FY 2013.
“Until Congress reaches a budget agreement, the president will not sign individual appropriations bills that simply attempt to enact the House Republican budget into law,” Donovan said.
House appropriators cut $3 billion from the president’s request for low-income rental assistance programs and cut funding for the Community Development Block Grant Program nearly in half to $1.6 billion, the lowest since 1975.
Housing counseling funds were also cut. The House bill provides 36% less funding than the president’s budget, which could “deny 750,000 people the help they need when trying to fight off foreclosures or address other issues,” the HUD secretary said Friday.
The Senate Appropriations Committee also voted on June 27 on a T-HUD budget. The senators approved a $54 billion FY 2014 Transportation, Housing and Related Agencies budget bill, which is $3 billion higher than the actual FY 2013 budget. However, Senate Republicans contend the budget baseline should reflect the sequester cuts that went into effect earlier this year. Sen. Richard Shelby, R-Ala., warned that he will raise objections to the T-HUD appropriations when it reaches the Senate floor.
As usual, the House and Senate appropriations bill provides $400 billion in loan commitment authority for the FHA single-family program.
