Having finished its FY11 appropriations bill, on April 15 the House voted 235 to 193 to approve the FY12 budget resolution, House Concurrent Resolution (H. Con. Res.) 34, that the House Committee on the Budget marked up on April 6 (see Memo, 4/8). The Budget Committee’s companion document, The Path to Prosperity, describes its FY12 funding plan and outlines some damaging impacts for affordable rental housing programs. Numerous Democratic members of the House spoke against the FY12 budget resolution during April 14 debate.
The House’s budget resolution supports imposing work requirements on recipients of federal housing assistance and changing permanent affordable housing resources to transitional housing resources by implementing time limits. NLIHC opposes such requirements for households eligible for federal housing assistance and opposes time limits in federal housing programs.
NLIHC joined 170 national organizations in signing a letter to House leaders criticizing the House FY12 budget resolution. “The Budget Resolution before you would slash income and opportunity for millions of low income and middle class Americans while shifting trillions of dollars to the wealthiest individuals and corporations… It should be rejected,” write the organizations in the letter coordinated by the Coalition on Human Needs (CHN).
Prior to the House vote on H. Con. Res. 34, the House Congressional Progressive Caucus (CPC) issued its FY12 “People’s Budget,” which the CPC says reflects “the values and priorities of working families in this country.” The CPC says that polls repeatedly indicate that Americans think cuts to safety net programs are unacceptable and are willing to shift to a progressive tax policy. The CPC’s budget resolution includes investments in housing to reduce homelessness and create “long-term economic viability” for families.
The CPC proposes increasing funding in FY12 for Tenant Based Rental Assistance, Project Based Rental Assistance, Public Housing Capital Funding and Public Housing Operating Funding, as well as funding the National Housing Trust Fund. The budget would also cap the benefit of the mortgage interest deduction to 28%, along with capping other tax benefits.
The Senate is not expected to take up the House’s budget resolution. Instead, the Senate is expected to craft its own budget resolution which may be strongly informed by the recommendations of Senators working on broad deficit reduction plans.
The bipartisan “Gang of Six,” Senators Richard Durbin (D-IL), Kent Conrad (D-ND), Mark Warner (D-VA), Tom Coburn (R-OK), Saxby Chambliss (R-GA) and Mike Crapo (R-ID), are crafting a deficit reduction plan and are expected to release it soon. The plan may include caps on non-defense discretionary spending, which would damage HUD programs, and prevent new housing resources for low income households from being appropriated in coming fiscal years.
View the CHN letter: http://www.chn.org/pdf/2011/NatlRyanBudgetSignOn.pdf
View the CPC budget: http://grijalva.house.gov/uploads/The%20CPC%20FY2012%20Budget.pdf
View the House budget resolution: http://budget.house.gov/UploadedFiles/fy2012FullReportText.pdf