Sequestration Impacts Continue to Emerge

As sequestration implementation continues, reports of the negative impacts for low income households continue to surface. The Coalition on Human Needs (CHN) is collecting stories on impacts, including housing impacts.  The Office of Management and Budget issued a memorandum on April 4 regarding sequestration implementation. OMB urges heads of federal agencies to reduce negative impact in areas where discretion can be exercised in their budgets.  The Center on Budget and Policy Priorities (CBPP) issued a paper on April 2 on the impact that sequestration will have on HUD programs. CBPP estimates that HUD funding will be reduced by $2 billion; this funding reduction will have serious impacts on low income families. CBPP estimates that 140,000 fewer households will be served by the Tenant-Based Rental Assistance program, that public housing agencies will raise rents on tenants thereby increasing the rent burdens of low income household, and that landlords will be less interested in accepting households with Section 8 vouchers as tenants.  In its paper, CPBB also describes impacts of cutting Homeless Assistance Grants and the impact that sequestration cuts at HUD will have on the overall shortage of affordable housing.  On April 23 from 3-4pm ET CBPP will hold a webinar, “Housing Voucher Funding Shortfalls Due to Sequestration: What Advocates Need to Know,” describing the anticipated impacts outlined in the report and providing advocates and public housing agencies with strategies to mitigate harm to the low income household served by the voucher program. View the CHN impact stories on this page (PDF). View the OMB memorandum on this page (PDF). View the CBPP paper on this page (PDF).