President Trump’s proposed fiscal 2020 budget, which runs from Oct. 1, 2019 through Sept. 30 2020, would cut the HUD budget by $8.7 billion to $44.1 billion.
It’s important to note that no White House budget is ever approved "as is" by the Congress. The annual appropriations process determines the levels of federal spending for each of the federal departments and agencies, and all programs within their respective jurisdictions.
While the president’s budget recommends spending levels for the next fiscal year, it is not legally binding. Congressional appropriators will have the final say in program realignment and spending levels.
Of note to the housing community, the White House budget for fiscal 2020 proposes budget cuts and recommendations to the following agencies that would:
Department of Labor
- Provide $22.2 billion for housing choice vouchers, a $229 million increase from fiscal 2019.
- Increase Project-Based Section 8 by $506 million to $12 billion.
- Include $100 million for the Rental Assistance Demonstration program, which converts old public housing units to vouchers or Project-Based Section 8 units.
- Eliminate the CDBG and HOME programs.
- Terminate the Housing Trust Fund and Capital Magnet Fund.
Department of Health and Human Services
- Cut the agency’s budget by nearly 10%, or $1.2 billion, from the fiscal 2019 level.
- Reform Job Corps by ending the Department of Agriculture’s role in the program and closing ineffective centers.
- Increase OSHA inspectors for conducting more inspections in high-hazard industries, such as construction.
- Support the president’s executive order to expand access to health coverage by allowing more employers to form association health plans.
- Increase fees on employers seeking labor certification through the Department of Labor to access foreign temporary worker programs (like H-2B).
- Allocate $160 million for apprenticeships.
Department of Agriculture
- Enhance the federal response to the opioid epidemic with over $2.5 billion for prevention, treatment and recovery support services.
Environmental Protection Agency
- Request $20.8 billion for USDA, a $3.6 billion, or 15% decrease from the fiscal 2019 level.
- Propose $250 million for Section 538 Guaranteed Loans for multifamily housing.
- Eliminate the Section 502 Single-Family Housing Direct Loan program, the Section 515 Multifamily Housing Direct Loan program and the Multifamily Housing Preservation and Revitalization program.
- Provide $1.4 billion for the Section 521 Rural Rental Assistance program.
- Merge the Rural Voucher program into the Rental Assistance program account.
- Rescind $40 million of carryover balances from the Rental Assistance program.
- Allocate $124 million to reduce opioid overdose deaths in rural communities.
Department of Treasury
- Slash EPA's overall funding levels by 31% from the levels enacted for fiscal 2019.
- Direct the EPA and U.S. Army Corps of Engineers to finalize proposed rulemaking narrowing the regulatory definition of "waters of the U.S." under the Clean Water Act.
- Increase and extend the guarantee fee charged by Fannie Mae and Freddie Mac.
NAHB will continue to monitor the appropriations process as funding decisions are made on key housing and labor programs.
For more information, contact Jessica Hall at 800-368-5242 x8253.