Impact of the Trump/Carson HUD Budget Cuts in St. Paul, Minnesota

On May 23, 2017, the White House released its FY18 budget. Based on HUD data, we estimate that St. Paul, Minnesota will lose  $3,621,606 annually as a result of the proposed HUD budget cuts.

ProgramFunding Lost
Housing Choice Vouchers$1,794,528
TOTAL$3,621,606
View Budget Impact For:

Housing Choice Voucher

 $3,621,606
 389 Families

Impact of Funding Cuts

Funded at $20.292 billion in FY17 the Housing Choice Voucher program would be cut by $.974 billion in FY18 to $19.3179 billion.

However, FY18 funding to renew vouchers that are already in use is only funded at $17.584 billion. Based on recently released HUD inflationary factors and an estimate of the number of new vouchers to be issued through 2017, FY18 funding would need to be $19.88 billion to renew all existing vouchers. The FY18 budget effectively cuts Housing Choice Voucher funding by $2.296 billion or 11.55%.

When applying 2017 (0.2%) and 2018 (4.07%) HUD Renewal Funding Inflation Factors to the 2016 average monthly voucher cost, housing authorities that serve St. Paul could lose funding for 389 vouchers with a total annual rent value of $3,621,606 without significant changes to housing policy.

Impact of Policy Changes

The White House budget proposes sweeping changes to the financial structure of housing subsidies. Notably, for all rental assistance programs, which includes the housing choice voucher program, 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 voucher, but all households benefiting from the program would pay substantially more for housing.

In St. Paul, the average voucher holder who now pays $372 toward rent would pay $434 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 $99. 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 voucher recipient in St. Paul could pay as much as an additional $161 toward their housing costs. With an average monthly income of $1,236, that means the average voucher family will be left with $703 per month to cover all non-housing living expenses.

Estimates on this page are based on the FY18 White House Budget and HUD data sets.

Direct sources and source changes are available on the FY18 HUD Budget Cut Estimator Change Log, Sources, and Methodology page.