This latest CR follows a two week CR, which expired March 18, that cut $4 billion from the federal government in FY11 during its two week duration. Most HUD programs escaped cuts in this latest CR with the exception of the Brownfields program, which was not funded.
The Senate and House now have three additional weeks to agree on a
full year FY11 CR. On February 19, the House passed H.R. 1, its full
year appropriations bill, which would cut more than $100 billion from
the President’s FY11 budget request (see Memo, 2/18).
The Senate voted down H.R. 1 but also did not agree to its own funding
bill, which was offered as a substitute amendment to H.R. 1.
The Senate must still gain agreement from members on appropriate funding levels for FY11 before negotiating a final figure with the House. While 10 Senate Democrats voted against the Senate’s FY11 funding proposal, it is reported that Senate leadership believes that they are close to agreement on an FY11 full year funding bill.
Meanwhile Senator Rand Paul (R-KY) launched attacks on HUD this week. On March 16, Senator Paul offered, but the Senate did not consider, an amendment to a small business bill that would eliminate funding for HUD and several other departments, agencies and programs for FY11. One program on his list is the Affordable Housing Program, operated by the Federal Home Loan Banks (FHLB). FHLBs use 10% of their annual net income to fund the AHP, which has created hundreds of thousands of housing units for very low income households.