HUD Secretary Fudge Responds to House Appropriations Ranking Member’s Request for Information on Impact of Potential Budget Cuts

Representative Rosa DeLauro (D-CT), ranking member of the U.S. House of Representatives’ Committee on Appropriations, sent letters to federal agencies on January 19 requesting information about how the House Republican leadership’s reported proposal to cut fiscal year (FY) 2024 discretionary spending to FY2022-enacted levels – which would result in a cut of at least 22% for essential programs – would impact crucial federal programs, including affordable housing and homelessness services programs managed by HUD and the U.S. Department of Agriculture (USDA) (see Memo, 1/23).

HUD Secretary Marcia L. Fudge responded to Ranking Member DeLauro’s request on March 17, explaining that the House Republican leadership’s reported proposal would “represent the most devastating impacts in HUD’s history” and “make it impossible to stave off mass evictions.” Among other effects, Secretary Fudge listed the following impacts on HUD programs if House Republicans cut federal spending back to the FY22 level:

  • 640,000 families would lose access to Housing Choice Vouchers and more than 430,000 families would be evicted from Section 8 housing.
  • Families living in public housing would be exposed to unsafe living conditions due to drastic cuts to the Public Housing Operating Fund and a projected $700 million cut from the capital grants.
  • Any cuts to the FY23 levels for HUD’s Project-Based Rental Assistance (PBRA) program would eliminate funding for approximately 286,000 families, leading to an unprecedented loss of existing affordable housing and mass evictions.
  • The average Community Development Block Grant (CDBG) annual grant would be reduced by approximately $440,000. The average HOME Investment Partnerships grant would be reduced by $330,000, resulting in more than 6,700 fewer units of affordable housing produced.
  • Cuts to the Emergency Solutions Grant (ESG) program would result in over 24,000 fewer people receiving assistance, likely resulting in significant increases in the number of people experiencing homelessness. A 22% cut from FY23 levels would result in nearly 95,000 fewer people receiving assistance through the Continuum of Care program.
  • With a 22% cut, funding for Native American Housing Block Grants would be reduced to its lowest level since the program was implemented in 1996, making it nearly impossible for most Tribal grantees to develop new affordable housing units and meet the basic operations and maintenance needs of their existing housing stock.

The White House released 51 state and territory fact sheets on March 30 documenting how families in each state would be impacted by cuts to domestic programs, including housing.

Read Ranking Member DeLauro’s letter to Secretary Fudge at: https://bit.ly/3XywZN8

Read Secretary Fudge’s letter to Ranking Member DeLauro at: https://bit.ly/40xlOpV

The White House fact sheets are available at: https://bit.ly/42XYcw4