Human Services News

Center on Budget and Policy Priorities:

Last year, Congress rejected deep cuts the Administration proposed in affordable housing and community development programs and funded the Department of Housing and Urban Development at $2.1 billion above the Administration's budget request for 2008.

For 2009, Congress will have to provide a substantially larger increase --- totaling $6.5 billion above the Administration's request --- to avoid cuts in core programs that help millions of low-income families secure decent housing at affordable rents.

First, Congress can no longer rely on large recaptures of unspent funds from the "Section 8" programs to finance HUD programs.

For most of the past decade, Congress and the Administration have used roughly $2 billion per year in unspent balances in Section 8 program accounts to help finance the current costs of HUD programs, thereby reducing the amount of new funding required.

Second, the President's budget fails to provide funding increases in HUD's three main rental assistance programs needed to prevent cuts in assistance to low-income families now being served.

The renewal of Housing Choice vouchers for 2 million low-income families will cost $15.5 billion in 2009, according to Center estimates, which is $868 million above the 2008 funding level and $1.3 billion above the President's 2009 request.

Once the nearly $2 billion in prior-year funds that were available (and rescinded) in fiscal year 2008 but will not be available in 2009 are netted out of Congress' 2008 appropriation, the President's overall 2009 budget for HUD is $885 million below the nominal 2008 level (i.e., the 2008 level before adjusting for inflation).