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.

Selected Programs FY19 FY20 Proposed $ Cut % Cut
CDBG Community Development Block Grant (CDBG) $3.365 B $0 $3.365 B 100%
Pub. Housing Cap. Fund Public Housing Capital Fund $2.775 B $0 $2.775 B 100%
Pub. Housing Op. Fund Public Housing Operating Fund $4.653 B $2.863 B $1.79 B 38.5%
HCV Renewals Housing Choice Voucher Renewals $21.4 B $20.116 B $1.284 B 6%
HOME HOME Investment Partnerships Program $1.25 B $0 $1.25 B 100%
Houising For The Elderly Section 202 Housing for the Elderly $0.678 B $0.644 B $0.034 B 5%
Housing For Persons w/Disabilities Section 811 Housing For Persons with Disabilities $0.184 B $0.157 B $0.027 B 14.7%
PBRA Project-Based Rental Assistance $11.747 B $12.021 B $-0.274 B -2.3%
Total For Select Programs $46.052 B $35.801 B $10.251 B 22.26%

National Impact on Critical Housing Programs

 $10,251,000,000

The White House Fiscal Year 2020 budget request for critical housing programs represent a 22.26% 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

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.

Public Housing Capital Fund

 $2,775,000,000
2,200,000 Households

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.

Public Housing Operating Fund

 $1,790,000,000

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.

Housing Choice Voucher Renewals

 $1,284,000,000
140,000 Households

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.

HOME Investment Partnerships Program

 $1,250,000,000

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

Section 811 Housing for Persons with Disabilities

 $27,000,000

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.

Section 202 Housing for The Elderly

 $34,000,000

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.

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