The president wants people getting federal rental assistance to shoulder more of their housing costs
President Donald Trump called for severe cuts for domestic programs, including housing for lower-income families, in his record $4.75 trillion proposed budget for 2020.
If the budget is approved by Congress, the US Department of Housing and Urban Development’s budget would be reduced by $8.7 billion (16.4%) next year. The department’s total gross discretionary funding would go down to $44.1 billion in 2020 from this year’s $52.8 billion. HUD programs help low- to moderate-income households to buy homes and afford rental housing.
Trump also tried to chop HUD’s budget last year by 18.3% by having the state, local governments and the private sector to shoulder some of the financial responsibility. Congress, however, did not approve the cut.
Affordable housing groups have slammed the proposed budget.
"The proposal would reduce housing benefits for the lowest-income people by slashing federal investments in affordable homes, increasing rents, and imposing harmful work requirements on America’s struggling families," said Diane Yentel, head of the National Low Income Housing Coalition. "If enacted, it could leave even more low-income people without stable homes, undermining family stability, increasing evictions, and, in worst cases, leading to more homelessness."
The budget would also require people receiving federal rental assistance to take on more of their housing costs, in a plan that would be phased in over six years. In addition, the budget would squeeze billions from state and local grant programs – throwing out the Community Development Block Grant program and others that provide financial aid for affordable housing.
However, Trump also requested $270 million for emergency solution grants intended to help communities provide emergency shelter for the homeless. He also included $90 million to help connect low-income families with social services and employment resources.
"For generations, the idea of the federal government providing housing assistance meant only one thing—helping to pay the rent so families can have a roof over their heads," said HUD Secretary Ben Carson. "But we must also think about how we can help families to access financial programs, educational opportunities, and higher paying jobs. In short, we must think beyond investing in bricks and mortar, and think about investing in people.”
