The House of Representatives moved forward with its FY14 budget work, while advocacy efforts for strong HUD and USDA Rural Housing Service appropriations stepped up in the second half of May. On May 21, the House Committee on Appropriations reported out its FY14 302(b) subcommittee funding allocations, which deeply cut the Transportation, Housing and Urban Development, and Related Agencies (THUD) Subcommittee funding allocation compared to FY13 levels. According to House Leadership, the THUD Subcommittee would be cut by 14.5%, or 9% compared to final post-sequestration FY13 funding. The THUD Subcommittee allocation has already been cut by 24% between FY10 and FY13, prior to sequestration. The House Committee on Appropriations also cut the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee allocation by 6% before sequestration or .6% after sequestration implementation. Committee Ranking Member Nita Lowey (D-NY) offered two amendments to the draft 302(b) report that were not agreed to by the Committee. One would have postponed the Committee’s reporting of FY14 302(b) levels for one month in order to allow time for the House and Senate to negotiate an agreement to turn off sequestration and establish a new 302(a) level. The second amendment would have replaced the draft 302(b) levels with levels consistent with funding in the President’s budget with two exceptions. Representative Lowey would have increased funding for the THUD Subcommittee because she “rejects the President’s underfunding of the Project-Based Rental Assistance” program. She also proposed a change to the transportation portion of the THUD allocation, an increase to the Environmental Protection Agency funding level, and a decrease in Department of Defense funding compared to the President’s FY14 budget request. Chair Hal Rogers (R-KY) opposed Ranking Member Lowey’s amendments but indicated that there may be “adjustments” to the House 302(a) level that would allow the Committee to make changes to certain 302(b) allocations in the coming months.The Budget Control Act of 2011 (BCA) set discretionary spending caps for ten consecutive fiscal years, beginning in 2013. The House FY14 concurrent budget resolution, sets its top line discretionary spending, known as the 302(a) level, at $967 billion, below the BCA cap. The Senate Committee on Appropriations agreed to a higher spending level of $1.058 trillion in its concurrent budget resolution for FY14. This gap between the House and Senate 302(b) allocations would customarily be reconciled by a Congressional conference committee. However, the two chambers have yet to decide to conference the resolution. Efforts to do were rebuffed by some Senate Republicans. Instead, the chambers are moving forward with appropriations work without a reconciled 302(a) level. The Senate Committee on Appropriations is expected to release its draft FY14 302(b) subcommittee allocations shortly. The Senate Committee is expected to craft its 302(b) allocations based upon the higher budget resolution figure of $1.058 trillion, which could allow for a higher level of funding for the THUD Subcommittee. Some Members of Congress continue to object to sequestration. Ranking Member Lowey issued a sequestration report on behalf of the Democratic Members of the House Appropriations Committee in May. In the report, specific impacts due to sequestration are outlined and mitigation strategies are offered. The report says that 125,000 Tenant-Based Rental Assistance vouchers may not be renewed, that waiting lists for vouchers will grow longer, and that voucher tenants can expect to see rent increases. On May 20, Representative Chris Van Hollen (D-MD) introduced, H.R. 2060, a bill that would restore FY13 sequestered funds. The bill was referred to the House Committees on Ways and Means, Budget and Agriculture. Representative Marcy Kaptur (D-OH) introduced a bill, H.R. 2177, to modify sequestration on May 23. The bill would eliminate sequestration for certain programs including unemployment benefits. The bill was referred to the House Committee on Oversight and Government Reform. Finally, Senator Mark Udall (D-CO) introduced S. 1017 on May 22. Senator Udall’s bill would provide federal departments flexibility in allocating sequestration cuts. The bill was referred to the Senate Committee on the Budget.There is currently no bipartisan vehicle in the House or Senate to replace sequestration, should the Republicans and Democrats agree to substitute or cancel sequestration.Advocates continued to urge Members of Congress to provide strong funding for HUD programs in FY14. NLIHC joined members of the Preservation Working Group, convened by the National Housing Trust, in sending a letter to the Chairs and Ranking Members of the House and Senate THUD Subcommittees urging them to provide sufficient funding to HUD to prevent underfunding of the Project-Based Rental Assistance program. “We urge you to provide full funding for the Project‐Based Section 8 program in FY2014. While the Administration requested a funding increase for this program, it will be inadequate to stop the short‐funding of rental assistance contracts,” wrote the organizations in the May 20 letter. NLIHC also signed on to testimony submitted to the House and Senate Appropriations THUD Subcommittees in support of funding for the HOME Investment Partnerships program. In the testimony submitted by members of the HOME Coalition, convened by the National Council of State Housing Agencies (NCSHA), organizations write, “HOME program funding is vital to the production and provision of housing affordable to low-income families. Yet, HOME has received devastating cuts—cut almost in half in just the past few years… To begin restoring funds for HOME, we implore you to fund HOME in FY 2014 at $1.6 billion, equal to its FY 2011 funding level.”View the PWG letter at: http://bit.ly/18wju2t View the HOME Coalition testimony to the House at: http://bit.ly/15f1WWI View the HOME Coalition testimony to the Senate at: http://bit.ly/13WETRl View the House Democrat’s sequestration report: http://1.usa.gov/12b0ant