President Trump announced today that the U.S. Department of Housing and Urban Development (HUD) would receive $47.9 billion in funding for the fiscal 2021 budget
, which runs from Oct. 1, 2020 through Sept. 30, 2021. This is a 15.2% decrease, or $8.6 billion cut, from the amount enacted for 2020.
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 2021 proposes budget recommendations that would:
Department of Agriculture
- Provide $18.83 billion for Section 8 Tenant Based Rental Assistance, a $5.04 billion drop from the fiscal 2020 appropriations approved by Congress. However, $5.18 billion has been moved to a new Moving to Work demonstration program. The program is for public housing authorities (PHAs) and provides them the opportunity to design and test innovative, locally designed strategies that use federal dollars more efficiently, help residents find employment and become self-sufficient, and increase housing choices for low-income families.
- Increase Project-Based Section 8 to $12.64 billion from $12.57 billion.
- Eliminate the CDBG, HOME and Choice Neighborhoods programs.
- Provide $24 billion for the Section 502 Guaranteed program, the same level as the last fiscal year.
- Propose $250 million for Section 538 Guaranteed Loans for multifamily housing, an increase of $20 million from the fiscal 2020 level.
- 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.
- Increase the Section 521 Rental Assistance program to $1.4 billion from $1.375 billion by also folding in funding from vouchers.
For more information, contact Jessica Hall
at 800-368-5242 x8253.