Congress and the nation moved closer to the implementation of sequestration during the week of February 18 as the House and Senate stood in recess. Sequestration of discretionary funds, an across-the-board cut that would decrease HUD and USDA Rural Housing funds by approximately 5.1%, is scheduled to take effect on March 1. While Republican and Democratic lawmakers alike have stated that sequestration is bad policy, it is unlikely that Congress will act to avert these cuts in the remaining three legislative days.
In a briefing on February 19, President Barack Obama told NLIHC and other advocates that sequestration is a “meat cleaver” approach that would harm the middle class. The President has urged lawmakers to pass a bill to avert sequestration. President Obama said his door is open to talk with anyone, but that he will not proceed with a bill that harms the middle class.
Early in the week of February 25, a bill is expected to introduced in the Senate to prevent sequestration by postponing the across-the-board cuts through other measures that would still ultimately meet the nation’s deficit reduction goals (see Memo, 2/15). The Senate bill is expected to include increases in revenue, primarily through closing tax loopholes, and targeted spending cuts. Even if the Senate reaches consensus on this bill, the House is unlikely to consider it.
Senate Democrats and House Republicans are divided on their approach to sequestration, with Republicans saying that new revenue should not be part of a sequestration replacement package and Democrats saying that sequestration cuts are too deep and must be lessened by revenues derived from taxes on the wealthiest Americans and closure of corporate tax loopholes. House Speaker John Boehner (R-OH) increased the divide during the week of February 18 when he said that the House would only be interested in a sequestration replacement package that also included a 10-year balanced budget requirement. Still other Republicans are telling constituents that sequestration is good for the nation, despite the impacts many Americans would experience.
This lack of consensus on not just how to prevent sequestration, but whether sequestration should be averted at all, and the fleeting number of legislative days mean that it is unlikely Congress will avoid the deadline by which the Administration needs implement the cuts.
If there is to be agreement on achieving the deficit reductions at which sequestration is aimed, it may be in legislation that will at long last finalize FY13 appropriations. The continuing resolution (CR) currently providing FY13 funding for federal agencies is set to expire on March 27. Congress is expected to act before then to avert a shutdown and to provide agencies with final funding levels for the second half of the fiscal year (see article elsewhere in Memo).
NLIHC and other anti-poverty and social justice organizations are urging advocates to continue contacting Members of Congress with the message that sequestration must be stopped. Resources are available to advocates that will help make the case with elected officials. The Coalition on Human Needs created fact sheets on the national and state impacts of sequestration that include the number of people served by Homeless Assistance Grants and the number of people who are served by tenant-based rental assistance vouchers. In addition, the Center on Budget and Policy Priorities has updated data on state-level impacts of sequestration on housing programs. These data, which include state-by-state losses for the Housing Choice Voucher, public housing, Native American housing grants, community development block grant, HOME, and Housing for Persons with AIDS programs, can aid advocates explaining sequestration’s impact on their communities.
Click here to view the CHN fact sheets.
Click here to view the latest CBPP charts.