Bush's FY06 Proposal Cuts HUD Budget 12%

WASHINGTON, DC-If Congress signs off on President George W. Bush’s more than $2.5-trillion FY06 budget proposal, the US Department of Housing and Urban Development will have 12% fewer funds for programs than it did last year. The White House has produced a budget that will decrease HUD’s funding from $32.4 billion in FY05 to $28.5 billion for the new fiscal term.

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.