The House Appropriations Committee approved a $37.6 billion fiscal 2006 budget for the Department of Housing and Urban Development late Tuesday that would keep the Community Development Block Grant program alive.
The panel passed the measure by voice vote Tuesday evening at the end of a marathon eight-hour meeting. The funding level of $37.6 billion is $2.5 billion more than the $35.1 billion that Congress appropriated for HUD in fiscal 2005 and $4.3 billion more than President Bush requested, according to the committees official report on the spending bill.
Appropriators rejected Bushs request not to fund the departments CDBG program, approving $4.2 billion for it in fiscal 2006, down from the current funding level of $4.7 billion. Bush wants to replace CDBG and 17 other programs with a new, less well-funded program.
Although the committee retained CDBG, it also rejected a proposal to add $250 million more to the program. The amendment offered by Rep. John Olver, D-Mass., was defeated, 27 to 34.
The spending package would provide $15.5 billion for tenant-based Section 8 housing subsidies in fiscal 2006, which is $765.5 million above current funding, but $313.8 million below the presidents request. The measure would also provide nearly $5.1 billion for project-based Section 8 rental assistance in fiscal 2006, which is $210 million below current funding, and $16.2 million above Bushs request.
The measure would provide $2.6 billion for the public housing capital fund, which is $20.8 million above current funding levels and $272.8 million more than Bush requested. The spending bill would provide $3.6 billion for the public housing operating fund, which is nearly $1.2 billion over current funding levels and $192.7 million more than the White House sought.
The package also would provide $1.9 billion in funding for the HOME Investment Partnerships program, which is $320,000 above funding in the current fiscal year, but $41 million below the level the administration requested.
The committee handed Bush a victory as it voted not to provide new funding for HUDs HOPE VI program, which demolishes or rehabilitates severely distressed public housing.
The administration has provided an overwhelming case that far too many [HOPE VI] projects have not been completed in a timely way Currently over $2 billion in funds from prior years remain in a backlog and hundreds of vouchers have remained unused for years, according to the committees report. Congress appropriated $142.8 million for HOPE VI in the current fiscal year. Bush also wanted to rescind those fiscal 2005 funds, but the committee refused.
Monies from the public housing capital fund, CDBG, HOME, HOPE VI, and Section 8 programs can be leveraged in municipal bond transactions. HUD is drafting regulations to allow public housing authorities to leverage public housing operating grants.
Committee aide Jennifer Hing yesterday said the full House is expected to consider the bill next week. The Senate Appropriations Committee has not yet scheduled action on its version of the spending bill, but numerous senators have indicated they intend to retain the CDBG program.
