HUD's Community Development Block Grant--a $4.1-billion program that provided assistance for affordable housing and homeless shelters--will be consolidated and redirected to the Department of Commerce's Strengthening America's Communities Program. And while the Housing Voucher, or Section 8 Program, will receive $18.4 billion--a $1-billion increase over the previous year's allotment--the National Low Income Housing Coalition says that the funds are still insufficient to adequately serve all of the households in need.

The White House and its supporters contend that the cuts are necessary for decreasing domestic spending. "This budget reflects some of the tough choices we must make to continue meeting our nation's key priorities," says HUD secretary Alphonso Jackson.

However, NLIHC notes that the cuts will do more harm than good. "The President is trying to appear to be getting tough on spending, but is pushing $1.3 trillion extension of his tax breaks for the rich," says Sheila Crowley, president of NLIHC. "These are the wrong priorities at the wrong time. Congress must reject these lopsided priorities and adopt a budget this year that reflects the real needs and right priorities of the country."