Impact of the Trump/Carson HUD Budget Cuts in New Jersey

On May 23, 2017, the White House released its FY18 budget. Based on HUD data, we estimate that New Jersey will lose  $268,071,983 annually as a result of the proposed HUD budget cuts. In addition, the cuts could impact up to  40,205 households per year.

ProgramFunding Lost
Community Development Block Grant$81,203,472
HOME Investment Partnerships Program$20,194,535
Public Housing Capital Fund$42,306,352
Public Housing Operating Fund$21,630,949
Housing Choice Vouchers$101,570,640
Section 811 Housing for Persons with Disabilities$1,166,035
TOTAL$268,071,983
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Community Development Block Grant (CDBG)

 $81,203,472

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 $5,440,812,821 (inflation adjusted) in community development projects in New Jersey.

In 2018, New Jersey stands to lose $81,203,472 per year in funding.

HOME Investment Partnerships Program

 $20,194,535

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. New Jersey would lose an estimated $20,194,535 per year in affordable housing funding.

Public Housing Operating Fund

 $21,630,949
 40,205 Units

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 New Jersey qualified for $190,352,287 in operating subsidy. A 13.3% reduction in the Public Housing Operating Fund would reduce subsidies received in New Jersey by $21,630,949 and would cut services to the 40,205 families living in Public Housing in New Jersey 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 New Jersey, the average public housing tenant who now pays $371 toward rent would pay $433 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 $94. 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 New Jersey could pay as much as an additional $156 toward their housing costs. With an average monthly income of $1,377, that means the average family will be left with $850 per month to cover all non-housing living expenses.

Public Housing Capital Fund

 $42,306,352
 38,638 Units

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 New Jersey qualified for $62,533,519 in capital repairs. A 68.4% reduction in the Public Housing Capital Fund would reduce repair funding by $42,306,352 and would slow down or halt repairs for about 38,638 families in New Jersey.

Housing Choice Voucher

 $101,570,640
 8,726 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%.

Based on the 2016 average monthly voucher cost of $970, New Jersey Housing Authorities could lose approximately 8,726 out of 75,551 vouchers with a total annual rent value of $101,570,640 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 New Jersey, the average voucher holder who now pays $430 toward rent would pay $502 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 $133. 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 New Jersey could pay as much as an additional $205 toward their housing costs. With an average monthly income of $1,419, that means the average voucher family will be left with $784 per month to cover all non-housing living expenses.

Section 811 Housing for Persons with Disabilities

Funded at $146.2 million in FY17, the Section 811 program could be cut by $24.9 million (17.03%) according to the White House budget. The program is used to subsidize the rent of affordable housing for Persons with Disabilities across America.

According to the 2016 Picture of Subsidized Households, there are 967 Section 811 funded apartments for persons with disabilities in New Jersey. The proposed budget cut would reduce the rental subsidy received by these properties by $1,166,035 forcing housing providers to cut services or increase rent contributions made by their low-income, disabled residents.

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.