On April 17, the Congressional Budget Office (CBO) released “Analysis of the President’s 2015 Budget,” in which CBO estimates revenue and spending impacts for the period 2015 to 2024 based on the Administration’s FY15 budget request to Congress.
CBO’s estimate of receipts that would be generated by HUD’s Federal Housing Administration (FHA) in FY15 is $4.3 billion lower than the President’s projection, an even greater gap than CBO anticipated in January. The President’s budget request estimated that FHA receipts would generate $2.8 billion more revenue than CBO’s January projection. FHA receipts have been used to offset HUD appropriations in recent fiscal years.
HUD Secretary Shaun Donovan testified on the gap between CBO’s and HUD’s estimates before the House Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Subcommittee earlier in April (see Memo, 4/11). Secretary Donovan said that HUD’s estimate of FHA receipts is higher because it has increased two FHA revenue-generating premiums that CBO had not taken into account in the January estimate. The new CBO estimate does not indicate if it takes the new fee revenue into account.
The House and Senate Appropriations Committees are expected to release their 302(b) subcommittee allocations after Congress returns from recess during the week of April 28.
View the CBO report: http://bit.ly/1qZwyH2