Second Week of Sequestration Brings Additional Impacts, Replacement Proposals

In the two weeks since the implementation of sequestration, plans from the Administration on how cuts will be exacted and the potential impacts of the cuts have slowly emerged. During the week of March 11, Members of Congress put forth plans to replace sequestration, but appear to be no closer to a bipartisan agreement than they did at the end of February. HUD issued additional guidance to public housing agencies, grantees, and HUD staff. HUD published additional guidance on its website regarding the Public Housing Operating Fund, Project-Based Rental Assistance, Housing Counseling, and Continuums of Care. HUD also sent letters to stakeholder groups, including NLIHC. HUD is scheduled to furlough staff for a total of 7 days. These seven days amount to one day per pay period for staff May through August, all scheduled as three-day weekends. During the week of March 11, the House and Senate Committees on the Budget each passed concurrent resolutions on the budget for FY14 which would replace sequestration (see next article in Memo.) The House Budget Committee would replace sequestration with much deeper cuts to non-defense discretionary spending than in sequestration. The committee’s budget would also end the even distribution of cuts between defense and non-defense spending. House Budget Committee Democrats have criticized the budget for hurting middle class and vulnerable Americans and plan to offer their own budget and sequestration plan the week of March 18. The House is scheduled take up the Budget Committee passed resolution during that week, as well. The Senate Budget Committee-passed resolution would replace sequestration but still enact cuts to non-defense discretionary spending. These cuts would be at a much lower level than the House budget cuts and require less reduction in spending than sequestration (see next article in Memo.) Senate Budget Committee Republicans voted against the budget resolution, saying that it allowed for too much government spending. Rather than furthering negotiations between parties on ending sequestration with a bipartisan deficit reduction package, the budget resolutions have demonstrated the still stark differences between Democratic and Republican philosophies about sequestration. The concurrent budget resolutions were thought to be the next likely legislative vehicle by which Congress could move a sequestration replacement plan. Despite these differences, the President continued discussions on ending sequestration, meeting with Congressional leadership in an attempt to pave the way for bipartisan agreement. Click here to view HUD’s letter to NLIHC.