National Housing Law Project Housing Law Bulletin

Congress has adopted a $1.74 trillion FY 2000 budget resolution which sets the parameters for spending by the appropriations committees. The measure,/1/ which does not require presidential approval, is a blueprint for allocations that will be made for spending within each of the 13 appropriations subcommittees, including the HUD subcommittee. Among the principal features of the congressionally approved budget are a multi-year $778 billion tax reduction, increased spending for education and defense, and deficit reduction through application of the Social Security surpluses to the national debt./2/

According to projections contained in a letter prepared by the Campaign for Housing and Community Development Funding, the budget assumes huge cuts in discretionary outlays for the federal low-income housing programs./3/ The Income Security budget function, which includes most of the low-income housing programs including public housing, vouchers and housing for the elderly and disabled, would face reductions of 14 percent, or $34 billion, over five years and 21 percent, or $110 billion, over 10 years./4/ Reductions in the function that includes the Community Development Block Grant and other community and economic development programs would be even greater: 30 percent, or $15 billion, over five years and 49 percent, or $50 billion, over 10 years. FHA programs funded from the Commerce and Housing Credit function would be dealt a devastating 48-percent or $10 billion blow over five years and 56 percent, or $26 billion, over 10 years.

Unlike the Administration’s budget, the Budget Resolution calls for large tax cuts and would devote all of the anticipated Social Security surpluses to debt reduction. These variations set the stage for a showdown with the Administration as the FY 2000 budget process proceeds.

Notes

1    "Concurrent Resolution Establishing the Congressional Budget for the United States Government for Fiscal Year 2000 and Setting Forth Appropriate Budgetary Levels for Each of the Fiscal Years 2001 through 20009" (H. CONF. REP. 91 (106^th Cong., 1^st Sess., Apr. 15, 1999) (H. Con. Res. 68, S. Con. Res. 20).

2    The Center on Budget and Policy Priorities has recently issued analysis of the budget surplus, "Without Reductions in Discretionary Programs, There Would Be Little Budget Surplus Outside Social Security" (Mar. 23, 1999). The report can be accessed through the Center’s website at http://www.cbpp.org3-23-99bud.htm.

3    The Campaign for Housing and Community Development Funding (CHCDF) is an umbrella group that advocates for the largest aggregate funding for the federal housing budget. Its constituent membership is hundreds of state and local housing and community development groups nationwide.

4    The budget "functions" refer to accounts within the budget that house the various federal spending programs.

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