Trump Administration’s Budget Proposal Includes Cuts to HUD, CDFI Fund
The Trump administration today released its proposed $4.7 trillion budget for fiscal year 2020, which proposes reductions in funding for the U.S. Department of Housing and Urban Development (HUD), including the elimination of the Community Development Block Grant (CDBG) and HOME Investment Partnerships programs and the Public Housing Capital Fund. The budget request includes $44.1 billion in gross HUD appropriations, a 16.4 percent cut from FY 2018 levels, and a $9.6 billion, or 18 percent cut from FY 2019, to support the core functions. Included within that amount is $37.9 billion to maintain services to currently assisted low-income families. The budget proposal also includes a request for $100 million to encourage HUD’s Rental Assistance Demonstration (RAD) development in opportunity zones.
Trump’s budget proposal would eliminate funding for discretionary grant and direct loan programs for the Community Development Financial Institutions (CDFI) Fund, including the Capital Magnet Fund.
The request would also repeal the renewable energy investment tax credit, accelerated depreciation option for renewable energy property, exclusion of utility conservation subsidies, and credit for residential energy efficient property. Congress will draft its own spending proposals in coming months.