Magazine article Nation's Cities Weekly

Congress Passes Continuing Resolution for Federal Budget Some Programs See Significant Cuts

Magazine article Nation's Cities Weekly

Congress Passes Continuing Resolution for Federal Budget Some Programs See Significant Cuts

Article excerpt

In order to prevent a government shut-down, Congress passed a six-week continuing resolution that will be in effect until November 18.

To put pressure on lawmakers to complete all the spending bills sooner rather than later, this particular resolution funds programs at the lowest level of three figures: the enacted fiscal 2005 level; the House-passed fiscal 2006 level; or the Senate-passed fiscal 2006 level.

This funding mechanism will squeeze many programs important to local governments.

The Senate has yet to pass a Transportation-Treasury-HUD Appropriations Bill, so the Continuing Resolution maintains HUD programs at the FY05 funding level or the House-passed FY06 funding levels, whichever is lowest.

The Community Development Block Grant (CDBG) program will be reduced by 6 percent to $3.9 billion, $251 million less than current levels.

The Section 8 Tenant-Based Assistance Account, which provides subsidies directly to tenants, will maintain FY05 funding levels. (The House bill would increase funding 5 percent to $15.6 billion).

The Section 8 Project-Based Rental Assistance Account, which provides subsidies to landlords for specific properties, will be reduced 4 percent to $5.1 billion, $210 million less than current funding.

Hope VI program for severely distressed public housing will be reduced to $60 million, $82.8 million less than current funding.

NLC is actively lobbying the Senate to restore full funding to the Community Development Block Grant program and the Hope VI program in its version of the Transportation-Treasury-HUD (TT-HUD) appropriations bill. …

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