HUD and McKinney-Vento Appropriations

HUD Appropriations

The Department of Housing and Urban Development (HUD) provides more direct funding for homeless organizations than any other federal agency. Several programs within the HUD budget contribute to preventing and ending homelessness, including:

• Homeless Assistance Grants;
• Housing Vouchers/Section 8;
• Public Housing;
• Housing Opportunities for People with AIDS (HOPWA);
• Housing for People with Disabilities (Section 811).

Funding for HUD programs has fared very poorly for most of the decade. Public Housing programs were cut for several consecutive years, and changes to the Housing Choice Voucher program led to fewer households being assisted.

Latest News:
At the end of September, President Bush signed a stopgap funding measure into law. The legislation provides level funding from FY 2008 for most areas, including T-HUD appropriations, through March 6, 2009. When Congress returns in early 2009, it will address appropriations for the remainder of FY 2009.

Previously, both the House and Senate had taken some action on the appropriations bill for the Departments of Transportation and Housing and Urban Development (T-HUD), but neither chamber had completed its version of the bill. On June 20, the House Appropriations Subcommittee on T-HUD approved a bill, and the Senate Appropriations Committee approved its version of the legislation on July 10.

McKinney-Vento Appropriations

HUD’s Homeless Assistance Grants fund a variety of programs and activities. Last year, $160 million was distributed to communities for the Emergency Shelter Grants program, and a similar amount will most likely be allocated this year. Most of the remaining funds are distributed through the Continuum of Care process. Under this process, homelessness providers in a specific geographic area work together to describe their assistance, identify their needs, and rank the projects that they want funded. HUD ranks the applications and provides funding based on the quality of the application, the performance of the local homeless assistance system, the need for homeless assistance, and the local rankings of individual programs. Funding can be used for permanent and supportive housing, transitional housing, and services.

While some cities have already made remarkable progress reducing homelessness, all of them are at a critical juncture. They have developed plans, brought in new partners, identified cost-effective strategies, and located some potential sources of funding. They are, however, counting on the federal government to be an active partner in their efforts.

The Administration’s FY 2009 budget request called for $1.636 billion for HUD homeless assistance funding, an increase of $50 million from 2008. This is less than the $75 million that is needed simply to keep up with permanent housing renewals.

The House T-HUD Appropriations Subcommittee approved a funding level of $1.691 billion, which is $105 million above last year’s level. The Senate Appropriations Committee approved $1.667 billion, an $81 million increase, including $10 million for a new demonstration to prevent veteran homelessness. The initiative would be for homeless assistance providers to provide housing assistance and services, including up to 18 months of rental assistance and case management.

Latest News:
At the end of September, President Bush signed a stopgap funding measure into law. The legislation provides level funding from FY 2008 for most programs, including McKinney-Vento, through March 6, 2009. When Congress returns in early 2009, it will address appropriations for the remainder of FY 2009.