Impact of the White House FY 19 Budget Summary on Michigan

On February 12, 2018, the Trump Administration released its Fiscal Year 2019 Budget Summary. Based on HUD data, we estimate that Michigan will lose  $274,145,215 annually as a result of the proposed HUD budget cuts. In addition, the cuts could impact up to 9,249 households per year.

Program Funding Lost Household Impact
Community Development Block Grant (CDBG) $111,243,088 -
Public Housing Capital Fund $31,262,624 -
Housing Choice Vouchers $69,143,423 9,249
Public Housing Operating Fund $33,174,168 -
HOME Investment Partnerships Program $29,321,913 -
TOTAL $274,145,215 9,249
View Budget Impact For:

Public Housing Capital Fund


Funded at $1.9415 billion in FY17, the Capital Fund would be eliminated in the FY 19 White House Budget. The elimination of the Public Housing Capital Fund would drastically reduce funding available for critical repairs at all 1.2 million rental units.

The Public Housing Capital Fund supports the development, modernization and major repair of public housing properties. It pays for things like new boilers, roof replacement, major rehabilitation or other costs needed to keep Public Housing properties safe, accessible and energy efficient. Without the Capital Fund, Public Housing Authorities would need to charge higher rents or even close down buildings.

The proposal authorizes Public Housing Authorities (PHAs) to combine their existing operating and capital accounts. With a 43.7% reduction of Operating Funds and a total elimination of Capital Funds, many Public Housing Authorities will be forced to defer critical repairs and remove affordable housing units from service.

Public Housing properties in Michigan qualified for $31,262,624 in capital repairs in 2017. In 2019, Michigan stands to lose that funding completely.

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 43.7% to $2.477 billion.

The Public Housing Operating Fund supports the management and daily operations of Public Housing Properties. This includes regular maintenance, utilities, staffing, accounting, local fees and similar expenses needed to operate rental housing. Without this support, Public Housing Authorities would have to raise rents, defer maintenance or even close down properties altogether.

In 2017, Public Housing properties located in Michigan qualified for $72,813,538 in operating subsidy. A 43.7% reduction in the Public Housing Operating Fund would reduce subsidies received in Michigan by $33,174,168 and would cut services to families living in Public Housing in Michigan.

Combined with the elimination of the Capital Fund, the reduction in Operation Funds could result in affordable housing units being removed from service due to substandard living conditions and lack in subsidy funding.

Housing Choice Voucher

9,249 Families

Impact of Funding Cuts

Funded at $20.292 billion in FY17 the Housing Choice Voucher program would be cut by $.974 billion in FY 18 to $19.3179 billion.

However, FY 19 funding to renew vouchers that are already in use is only funded at $18.7 billion. The Center on Budget and Policy Priorities estimates that $20.5 billion would be required to renew existing vouchers in 2019 due to factors affecting the rental market, such as inflation.

Funding to maintain 2017 levels of Housing Choice Vouchers in Michigan would effectively be cut by $69,143,423 causing 9,249 out of 61,421 existing voucher holding families to lose assistance.

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).

If these reforms were put into place, Michigan voucher holders who now pay on average $314 toward rent would pay $366 under the proposed budget.

As a result of the housing subsidy reforms proposed in the 2019 White House budget, the average voucher recipient in Michigan could pay as much as an additional $52 toward their housing costs. With an average monthly income of $1,031, that means the average voucher household will be left with $665 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 $6,878,981,058 (inflation adjusted) in community development projects in Michigan.

In 2019, Michigan stands to lose $111,243,088 per year in funding for basic infrastructure improvements, maintenance, and economic development.

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. Michigan would lose an estimated $29,321,913 per year in affordable housing funding in 2019.

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.

Estimates on this page are based on the FY 19 White House Budget and HUD data sets.

Direct sources and source changes are available on the FY 19 HUD Budget Cut Estimator Change Log, Sources, and Methodology page.