Impact of the Trump/Carson HUD Budget Cuts in Springfield, Illinois
On May 23, 2017, the White House released its FY 18 budget. Based on HUD data, we estimate that Springfield, Illinois will lose $2,743,384 annually as a result of the proposed HUD budget cuts. In addition, the cuts could impact up to 726 households per year.
Funded at $1.9415 billion in FY17 and used to fund repairs at Public Housing properties, the Capital Fund could be cut by $1.3135 billion (67.65%), reducing funds available for repairs at all 1.2 million rental units.
Public Housing properties operated in Springfield, Illinois qualified for $1,341,218 in capital repairs. A 68.4% reduction in the Public Housing Capital Fund would reduce repair funding by $907,386 and would slow down or halt repairs for about 734 families in Springfield, Illinois.
Public Housing Operating Fund
Impact of Funding Cuts
Funded at $4.4 billion in FY17 and used to subsidize the rent of all 1.2 million families living in Public Housing, the Operating Fund could be cut by $500 million (11.3%).
In 2016, Public Housing properties located in Springfield, Illinois qualified for $3,200,232 in operating subsidy. A 13.3% reduction in the Public Housing Operating Fund would reduce subsidies received in Springfield, Illinois by $363,663 and would cut services to families living in Public Housing in Springfield, Illinois and could take some units off line for lack of operational funding.
Impact of Policy Changes
The White House budget proposes sweeping changes to the financial structure of housing subsidies. It proposes tenant contributions be increased from 30% of income to 35%, a minimum rent of $50 (up from $25) and eliminating utility reimbursements.
If these reforms were put into place, it is possible that no current housing assistance recipient would lose their home, but all households benefiting from the program would pay substantially more for housing.
In Springfield, the average public housing tenant who now pays $292 toward rent would pay $341 under the Trump/Carson HUD budget. In addition, tenants would not receive reimbursement for tenant-paid utilities which could be as much or more than $155. This utility reimbursement prohibition alone would impact the poorest of the poor and have a catastrophic impact on their housing expenses.
As a result of the housing subsidy reforms proposed in the 2018 White House budget, the average public housing tenant recipient in Springfield could pay as much as an additional $204 toward their housing costs. With an average monthly income of $1,105, that means the average family will be left with $609 per month to cover all non-housing living expenses.
Community Development Block Grant (CDBG)
Funded at $3.060 billion in FY17 and used for a variety of community development projects ranging from streetscape projects to Meals on Wheels programs, the CDBG program would be eliminated completely by the Trump/Carson Administration. From 1977 through 2014, the CDBG program has funded an estimated $101,770,892 (inflation adjusted) in community development projects in Springfield, Illinois.
In 2018, Springfield, Illinois stands to lose $1,057,581 per year in funding.
For examples on how the CDBG program impacts Springfield, Illinois, view the table of CDBG activity.
HOME Investment Partnerships Program
Funded at $950 million in FY17 and used to fund many affordable housing related activities like homeownership and rental housing development, the HOME program would be eliminated completely by the Administration. Springfield, Illinois would lose an estimated $414,754 per year in affordable housing funding.
For examples on how the HOME program impacts Springfield, Illinois, view the table of HOME activity.
Be an Advocate for Affordable Housing
The Trump Administration proposes an $8.8 billion cut to HUD's FY 19 Budget, which would greatly reduce, or outright eliminate funding for programs that assist renters nationwide. Use the Contact Congress button below to tell your Congresspersons to fully fund America’s affordable housing, and use the Facebook and Twitter share buttons to help spread the word to your friends and family.
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