Federal Budget Approved with Cuts to Housing

 NASA is funded at $16.2 billion, $822 million above last year and $44 million below the request. The agreement gives NASA almost total funding flexibility, but requires NASA to report to the Congress within 60 days on how they will adjust program values to cover increased costs associated with the Hubble servicing/repair mission and shuttle return-to-flight activities. This flexibility is unprecedented and gives the Administrator broad latitude to implement the President’s vision for Space within the funds provided in the bill.

     The Department of Housing and Urban Development (HUD) is funded at $37.3 billion, $618 million below last year’s level and $521 million above the President’s Request. Includes a provision to synchronize funding for public housing operations to a calendar year resulting in saving of $994 million.

     Funding for Section 8 programs is split into two accounts to provide better accountability and oversight.

     Tenant-Based Rental Assistance (Section 8 vouchers) is funded at $14.9 billion, $697 million over last year and $1.77 billion over the request. This includes $13.46 billion for Section 8 voucher renewals, $742 million, or 6% over last year, and $1.67 billion over the request. This is in addition to the 15% increase the program received last year. Section 8 is treated as a budget or dollar based system like all other discretionary programs. Does not include Administration’s proposed authorization legislation to alter income targeting and tenant rent contributions.

     Project-Based Rental Assistance (project-based contracts) is funded at $5.34 billion, $270 million over last year and $10 million below the request.

     Public and Indian Housing programs are funded at $5.8 billion, which reflects a one-time $994 million reduction in Operating Subsidies due to synchronization of the program to a calendar year funding cycle. Includes $2.6 for the Capital Fund, $144 million for HOPE VI, and $627 million for the Native American Housing Block Grant, a 3 percent reduction from last year.

    HOME Investments Partnership is funded at $1.9 billion.

    Includes $1.3 billion for Homeless programs, $284 million for Housing Opportunities for Persons with AIDS (HOPWA), $747 million for Elderly Housing, and $240 million for Housing for Persons with Disabilities.

Other Items of Interest:

    The Corporation for National and Community Service is funded at $578 million, $3 million below last year and $64 million below the President’s request. This supports a volunteer level of 70,000.

Copyright Homeless Grapevine Issue #67 December 2004 Cleveland Ohio.