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The Department of Housing and Urban Development (HUD): FY2006 Budget (CRS Report for Congress)

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Release Date Revised Feb. 28, 2006
Report Number RL32869
Report Type Report
Authors Bruce Foote, and Maggie McCarty, and Libby Perl, Domestic Social Policy Division; and Eugene Boyd, Government and Finance Division
Source Agency Congressional Research Service
Older Revisions
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Summary:

In February 2005, a House Appropriations Committee reorganization plan abolished the Veterans Affairs, Department of Housing and Urban Development (HUD), and Independent Agencies Subcommittee, sending HUD to a new Treasury, Transportation, Judiciary, Housing and Urban Development, District of Columbia and Related Agencies Subcommittee. A similar but not identical change was made in the Senate, creating the Transportation, Treasury, HUD Subcommittee. On February 7, 2005, the Administration submitted a $29.1 billion FY2006 budget request for HUD, which is 9% less than was provided in FY2005. The most controversial part of the budget proposal would have eliminated the Community Development Block Grant (CDBG) program in HUD and transferred its purposes to the Department of Commerce, combining it with 17 other programs (that had approximately $5.6 billion of appropriations in FY2005) into a new $3.7 billion Strengthening America's Communities Initiative (SACI) grant program. The President's budget proposal also included increased funding for Section 8 tenant-based rental vouchers, Homeless Assistance Grants, and the HOME program; decreased funding for Housing for the Disabled (Section 811), Housing for Persons with AIDS, and Fair Housing programs; and elimination of funding for the HOPE VI program. On June 30, 2005, the House approved an FY2006 HUD appropriations bill, H.R. 3058 , funding HUD at more than $4 billion above the President's requested level. The bill, which rejected the President's SACI initiative, would fund CDBG at HUD and increase funding above the President's request for several HUD programs. On October 20, 2005, the Senate passed its version of H.R. 3058 , providing for HUD more than $5 billion above what the President requested and more than $1 billion above what the House version allocated. Like the House bill, the Senate version rejected the President's SACI initiative and proposed to fund CDBG and related programs within the HUD budget, and increase funding above the President's request and the House-approved level for several HUD programs, including HOPE VI and Section 811. On October 28, 2005, the President submitted to Congress a rescission and reallocation package that would rescind $124 million in HUD funding and transfer $2.2 billion to HUD from FEMA's disaster relief fund. A modified version was attached to the FY2006 Defense Appropriations law ( P.L. 109-148 ), providing $11.9 billion for HUD. That bill also contained a 1% across-the-board rescission that applies to all of HUD's discretionary programs. On November 18, 2005, the House and Senate approved a final version of the FY2006 HUD appropriations bill. It does not adopt the CDBG transfer, and funds most programs between the House- and Senate-approved levels.