Bush Budget Leaves No Millionaire Behind as He Proposes Massive Cuts
 To Programs for Homeless and Low-Income People

On February 6th, 2006, President Bush sent his proposed $2.77 trillion FY2007 budget to Congress.  His proposals would cut $600 million from the Department of Housing and Urban Development (HUD), a 1.8% decrease from the FY06 appropriations; and funding for Health and Human Services (HHS) discretionary programs would decline by $1.6 billion.

While the President’s proposed budget does increase funding in some areas, the Homeless Assistance Grants increased by $209 million and Housing for People with AIDS (HOPWA) saw a $14 million increase, it makes these increases by making reductions in other programs for low-income people, not by finding new resources.

HUD programs that are taking the largest reductions include the Community Development Block Grant (CDBG), which would loose $736 million in funding, which is a 20% decrease over FY 2006.  Section 202, housing for the elderly, takes a 26% decrease in funding ($190 million) and Section 811, housing for people with disabilities, takes a 50% cut of $118 million.  These two program cuts would significantly reduce housing assistance for some of our country’s most vulnerable populations, including families, seniors and people with disabilities.

The Department of Health and Human Services Community Services Block Grant (CSBG) is being eliminated.  The Grants for the Benefits of Homeless Individuals (GBHI) lost $5 million in funding, the Mental Health Performance Partnership saw $1 million in lost funding and the PATH program saw no increase for FY 2007. 

Even with a few programs seeing increases, the budget simply shifts funds from one program to another, pitting low-income populations against each other.  Even before the Gulf Coast hurricanes hit, the nation faced an affordable housing crisis.  It is incredibly disingenuous of this Administration to have a stated goal of HUD be to “prevent and end chronic homelessness,” while under funding and dismantling the very federal programs that could help meet this goal.  It is disgraceful that in the wake of natural disasters the President proposes a budget that cuts programs crucial to aiding survivors in the recovery process.  In the end, these cuts will only serve to increase the homeless population and prevent people from receiving the assistance they need to break out of the cycle of homelessness.  Combined with the proposed $183 billion in cuts in funding to domestic discretionary programs [energy, transportation, education, health veterans benefits], the resulting budget is a budget of increased misery, desperation and despair.

Finally, alongside of these outrageous and absurd program cuts, the Administration has brazenly proposed tax cuts for the wealthy.  97% of the tax cuts will be given to those who make at least $200,000 a year, and half of that will go to those taking over $1 million.  The cost of the recent tax cuts was $225 billion in 2005, while the HUD budget proposal this year is $33.6 billion.  The budget reductions combined with the tax cuts is a clear indication that the Administration has no intention of ending homelessness or addressing the crisis of poverty in this nation.  It is the height of hypocrisy for this President to praise the memory of Coretta Scott King having just days before proposed a mean-spirited, immoral and unjust budget.  NCH calls upon all who believe in justice to stand with us to call on Congress to have the fortitude to “hold the line” against the Bush attack on homeless and low-income people and re-order our national priorities by passing the Bringing America Home Act and the National Housing Trust Fund.