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No New Housing: Impact of the Trump 2020 HUD Budget

On March 11, 2019, the Trump Administration released its Fiscal Year 2020 Budget Summary. The White House is proposing more than $9 billion in cuts to critical housing programs. The House of Representatives FY 2020 Spending Bill would increase the funding levels of those programs by more than $3 Billion.

Selected Programs FY19 Final FY20 Trump ($/% Change) House FY20 ($/% Change)
CDBG Community Development Block Grant (CDBG) $3.365 B $-3.365 B / -100% $0.235 B / 6.98%
Pub. Housing Cap. Fund Public Housing Capital Fund $2.775 B $-2.775 B / -100% $0.08 B / 2.88%
Pub. Housing Op. Fund Public Housing Operating Fund $4.653 B $-1.79 B / -38.47% $0.1 B / 2.15%
HOME HOME Investment Partnerships Program $1.25 B $-1.25 B / -100% $0.5 B / 40%
HCV Renewals Housing Choice Voucher Renewals $20.313 B $-0.197 B / -0.97% $1.087 B / 5.35%
Houising For The Elderly Section 202 Housing for the Elderly $0.678 B $-0.034 B / -5.01% $0.125 B / 18.44%
Housing For Persons w/Disabilities Section 811 Housing For Persons with Disabilities $0.184 B $-0.027 B / -14.67% $0.075 B / 40.76%
PBRA Project-Based Rental Assistance $11.747 B $0.274 B / 2.33% $0.843 B / 7.18%
Total For Select Programs $44.965 B $-9.164 B / -20.38% $3.045 B / 6.77%

National Impact on Critical Housing Programs

 $9,164,000,000

The White House Fiscal Year 2020 budget request for critical housing programs represent a 20.38% reduction in funding and the complete elimination of the Community Development Block Grant, HOME Investment Partnerships Program, and Public Housing Capital Fund.

Some high impact programs, like the Project Based Rental Assistance program, do not see direct cuts but are only funded to sustain existing assistance without creating new housing opportunities. Additional policy recommendations include restructuring minimum rents and implementing work requirements that would disproportionately impact the most vulnerable tenants.

View Budget Impact For:

Community Development Block Grant (CDBG)

 $3,365,000,000
FY20 Trump Administration Budget Summary

Funded at $3.365 billion in FY19 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 Administration.

Communities across America stand to lose $3,365,000,000 per year in funding for basic infrastructure improvements, maintenance, and economic development.

House FY20 Spending Bill

In a reversal from the White House budget, The House bill would preserve the CDBG program and authorize a $235 Million (6.98%) increase in spending.

Public Housing Capital Fund

 $2,775,000,000
2,200,000 Households
FY20 Trump Administration Budget Summary

Funded at $2.75 billion in Fiscal Year 2019, the Public Housing Capital Fund would be eliminated in the FY 2020 White House Budget. The elimination of the Capital Fund would drastically reduce funding available for critical repairs at all 1.2 million Public Housing rental units.

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This proposal dismisses the federal responsibility to maintain safe and secure housing for the 2.2 million Americans living in Public Housing. The majority of those residents are already disproportionately affected by the scarcity of affordable housing. Based on 2018 HUD Public Use Microdata Sample, 54.27% of all households in Public Housing have a head of household or spouse that is elderly or disabled. Of households that are not elderly or disabled, 66.49% have children.

In its 2010 Capital Needs in The Public Housing Program report, HUD estimated that $26 billion in repairs were needed to maintain affordable housing units in the Public Housing program.

House FY20 Spending Bill

The House bill will retain the Public Housing Capital Fund and allocate an additional $80 Million in funding for the critical account.

Additionally new funding policies in the House bill aim to assist public housing authorities in reducing health hazards in aging public housing units and $28 million would be set aside to pilot a new physical inspection and capital needs assessement process.

Public Housing Operating Fund

 $1,790,000,000
FY20 Trump Administration Budget Summary

Funded at $4.55 billion in FY19 and used to subsidize the rent of all 1.2 million families living in Public Housing, the Public Housing Operating Fund will be cut by $1.687 billion (37.1%).

The 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.

House FY20 Spending Bill

The Public Housing Operating Fund would be increaed by $100 million to help mitigate rising maintenance, utility, and staffing costs.

FY20 Trump Administration Budget Summary
 $1,284,000,000
140,000 Households

Housing Choice Voucher Renewals

Funded at $22.598 billion in FY19 the Housing Choice Voucher program would be cut by $.354 billion in FY20 to $22.244 billion.

However, FY20 funding to renew vouchers that are already in use is only funded at $20.116 billion. The Center on Budget and Policy Priorities estimates that $21.4 billion would be required to renew existing vouchers in 2020 due to rent inflation and other cost of living factors.

Funding to maintain existing levels of Housing Choice Vouchers would effectively be cut by $1.284 billion and cause an estimated 140,000 households to lose their assistance. Based on 2018 HUD Public Use Microdata Sample, 53.25% of all households participating in the Housing Choice Voucher program have a head of household or spouse that is elderly or disabled. Of non-Elderly or Disabled households, 72.99% have children.

House FY20 Spending Bill

The House Bill would provide $23.810 billion for tenant based rental assistance including the $21.4 billion needed to renew existing housing choice vouchers. Family Unification vouchers will receive double the $20 million in funding allocated in FY19.

Additionally, a new pilot program will be funded to provide vouchers and mobility services to help low-income families with children move to areas of opportunity.

HOME Investment Partnerships Program

 $1,250,000,000
FY20 Trump Administration Budget Summary

Used to fund many affordable housing related activities like homeownership and rental housing development, the HOME program would be eliminated completely by the Administration.

House FY20 Spending Bill

Instead of eliminationg the program, the House bill would allocate an additional $500 million to HOME programs to facilitate the development and rehabilitation of affordable housing opportunities.

Section 811 Housing for Persons with Disabilities

 $27,000,000
FY20 Trump Administration Budget Summary

Funded at $146.2 million in FY 19, the Section 811 program would be cut by $73 million (31.7%) according to the White House budget. The program is used to subsidize the rent of safe, affordable housing for persons with disabilities.

House FY20 Spending Bill

Affordable and safe housing for persons with disabilities would receive 40.76% more funding under the House spending bill bringing the budget for the program to $259 Million.

Section 202 Housing for The Elderly

 $34,000,000
FY20 Trump Administration Budget Summary

Funded at $678 million in FY17, the Section 811 program would be cut by $34 million (2.3%) according to the White House budget. The program is used to subsidize the rent of safe, affordable housing for seniors.

House FY20 Spending Bill

The primary affordable housing program for senior households would see a $125 million (18.44%) budget increase from the House spending bill.

Estimates on this page are based on the FY 20 White House Budget and HUD data sets.