Representatives debate HUD’s funding after threats of budget cuts

Members of a House Financial Services subcommittee debated whether to decrease funding for the Department of Housing and Urban Development (HUD) Wednesday, following a proposal from another House committee to cut funds by more than $22 billion.  

The House Subcommittee on Housing and Insurance called HUD Inspector General Rae Oliver Davis to the hearing, who spoke about the department’s various successes and oversights. Davis also testified to how the current budget for the department restricts its ability to perform effectively.

“There is not enough funding available to fix these problems,” Davis said, referring to limited affordable housing and the dangerous living conditions in those buildings.

Republican committee members argued against increasing HUD’s resources, alleging that the department cannot be trusted to use it effectively and properly.

Rep. Warren Davidson (R-Ohio) pointed out the inspector general’s report that found $950 million in the department’s budget that could be reallocated. He also highlighted the $100 billion of federal grants that HUD is responsible for.

“That’s a staggering amount,” Davidson said about the federal grant money. He mentioned the number is particularly concerning due to what he called HUD’s “challenges in overseeing grant money.” Davidson also commented on how many of HUD’s programs have continually received funding but were not authorized by Congress, one of which is the Community Development Block Grant for Disaster Recovery — the department’s largest grant that provides aid to areas struck by what the president declares to be disasters.

“These include programs for the nation’s most vulnerable populations such as public housing, section 8, and health and safety programs,” Davidson said about the many unauthorized grants. 

Democratic committee members supported an increase of the department’s budget, arguing that cuts could lead to detrimental consequences for HUD program participants.

Rep. Nydia Velázquez (D-N.Y.) pushed back on Davidson’s claim to care about preserving safety nets in the U.S., pointing to the GOP approval of the House appropriations bill that cut 30 percent of federal spending across the board.

“HUD’s public housing operating fund will face a 78 percent cut,” Velázquez said, illustrating the effect the appropriations bill has on welfare programs. She also mentioned that many who are homeless will lose their federal assistance due to decreased funding.

“It is unfair to starve a department’s resources and then criticize it for not meeting its mission,” Velázquez said.