House Republicans Move Quickly to Draft Reconciliation Package, Including Proposal to Cut CFPB Budget by 70% and Rescind Unobligated Funding from HUD Green Housing Program

House Republicans are moving quickly to draft the legislative text of a massive budget reconciliation bill that would spend over $5 trillion to extend tax cuts, increase funding for immigration enforcement, and fund other Trump Administration priorities while also cutting at least $1.5 trillion in the federal budget through cuts to other federal programs, including the Consumer Financial Protection Bureau (CFPB), Medicaid, and the Supplemental Nutrition Assistance Program (SNAP).    

Following instructions in the budget resolution Republicans passed in the House and Senate last month (see Memo, 4/14), the House Financial Services Committee (HFSC) drafted and approved along party lines a proposal that would slash funding for the CFPB and agencies under its jurisdiction by about 70% and eliminate the Public Company Accounting Oversight Board (PCAOB). The CFPB was created in the “Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010,” and charged with protecting consumers from unfair, deceptive, or abusive financial practices, including in the housing market and in tenant screenings. The PCAOB is an independent nonprofit responsible for auditing publicly traded companies. It was created by Congress in the wake of several large-scale instances of financial reporting fraud that prompted a financial crisis in the early 2000s.  

In addition, the proposal would rescind unobligated funding from HUD’s Green and Resilient Retrofit Program, which provides funding for owners and operators of HUD-assisted multifamily housing to make energy efficient upgrades and needed repairs to increase disaster resiliency. In total, if enacted HFSC Republicans expect these cuts to save $5 billion in federal spending over the next ten years. 

The House committees responsible for tax policy, Medicaid, SNAP funding are expected to release and vote on their legislative text the week of May 12. While housing assistance has not been named as a potential target for cuts, the anti-poverty programs being considered play a crucial role in economic stability for people and families with low incomes, helping them put food on the table and receive needed medical care. The financial assistance these programs provide also promotes housing stability: by helping families afford the cost of food and other necessities, more money is left over at the end of the month to ensure rent is paid. States can also use Medicaid to cover health-related social needs, including housing.  

The threats to Medicaid, which serves over 72 million low-income people around the country, and SNAP, which serves over 42 million people, have triggered widespread outcry from advocates around the country. Public opposition to the proposed cuts to Medicaid and SNAP is pressuring moderate and swing-district Republicans to express concerns about the bill to leadership; as negotiations continue, it will be crucial for advocates – especially those in Republican districts and states – to keep up the pressure on their members of Congress to vote against any reconciliation bill that would cut vital safety net programs.  

The National Alliance to End Homelessness launched a Take Action page for advocates to quickly and easily contact their elected officials and urge them not to support cuts to Medicaid. Take action here: tinyurl.com/3c2ntnnw  

Learn more about how you can advocate for continued SNAP funding at the Food, Research, and Action Center’s (FRAC) website: tinyurl.com/2mzr5pb3