It contained a reallocation of $29 billion in Hurricane Katrina recovery funds,as well as a 1% across-the-board rescission for all domestic discretionary programs. 3058 , the FY2006Treasury, Transportation, Judiciary, Housing and Urban Development (HUD), District of Columbia,and Related Agencies (TTHUD) funding bill. It was signed into law on November 30, 2005, as P.L.109-115 . For most accounts, the final agreement splits thedifference between the House- and Senate- approved levels, and it rejects the Administration'sStrengthening America's Communities Initiative (SACI), which would have eliminated theCommunity Development Block Grant (CDBG) program and replaced it with a new program withinthe Department of Commerce. Rescission and Reallocation Package Submitted. Like the Houseversion, the Senate bill rejected the President's SACI proposal. On June 21,2005, the House Appropriations Committee approved, with minor changes, an FY2006 TTHUDfunding bill that was approved by the Subcommittee on June 15, 2005. 3058 provided an overall increase in funding for HUD of more than $4 billion above the President'srequest. President's Budget Submitted. The Presidentsubmitted his FY2006 budget to the Congress on February 7, 2005, requesting $29.1 billion forHUD, a cut of $2.8 billion, or 9%, from FY2005 appropriations of $31.9 billion. The mostcontroversial aspect of the budget was the proposed elimination of the CDBG and related programsat HUD, and their replacement with a new program at the Department of Commerce. 109-148 . HOPE VI. The bill adopted the President's request that the Indian Economic Block Grant program, whichwas funded within the Community Development Fund, be funded as a set-aside in this account; H.R.3058 would set aside $45 million for this purpose, which is a 35% reduction in fundingfrom FY2005 and a 22% reduction in funding from the President's request. Housing for Persons with AIDS (HOPWA). On October 20, 2005, the full Senate approved its version of H.R. The Senate bill would have appropriated $32.4 million infunding for college and university programs and retain the programs under the CDF account, whilethe House bill called for transferring the activity to a new Self Help and Assisted Homeownershipaccount; it would appropriate $40 million for the Neighborhood Initiative Program, a program thatwas not included in the President's request or the House version of the bill; and it would haveappropriated $30 million for capacity building grants under the National Community DevelopmentInitiative program, which is $2 million less than the amount recommended by the House. Both the House and Senate-passed versions of the FY2006 HUD bill would have provided$1.9 billion for the HOME program in FY2006, less than the President requested, but slightly morethan was provided in FY2005. Like the House and Senate versions, the final version includes funds for capitalgrants, but does not transfer Section 811 vouchers to the Section 8 tenant-based rental account, asthe Senate version proposed. 3058 increased funding for fair housing activitiesabove the President's requested level, but provided less than was appropriated in FY2005 and whatwas recommended by the House.
In February 2005, a House Appropriations Committee reorganization plan abolished theVeterans Affairs, Department of Housing and Urban Development (HUD), and IndependentAgencies Subcommittee, sending HUD to a new Treasury, Transportation, Judiciary, Housing andUrban Development, District of Columbia and Related Agencies Subcommittee. A similar but notidentical 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 requestfor HUD, which is 9% less than was provided in FY2005. The most controversial part of the budgetproposal would have eliminated the Community Development Block Grant (CDBG) program inHUD and transferred its purposes to the Department of Commerce, combining it with 17 otherprograms (that had approximately $5.6 billion of appropriations in FY2005) into a new $3.7 billionStrengthening America's Communities Initiative (SACI) grant program. The President's budgetproposal also included increased funding for Section 8 tenant-based rental vouchers, HomelessAssistance Grants, and the HOME program; decreased funding for Housing for the Disabled (Section811), Housing for Persons with AIDS, and Fair Housing programs; and elimination of funding forthe 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 increasefunding above the President's request for several HUD programs.
On October 20, 2005, the Senate passed its version of H.R. 3058 , providing forHUD more than $5 billion above what the President requested and more than $1 billion above whatthe House version allocated. Like the House bill, the Senate version rejected the President's SACIinitiative and proposed to fund CDBG and related programs within the HUD budget, and increasefunding 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 reallocationpackage that would rescind $124 million in HUD funding and transfer $2.2 billion to HUD fromFEMA's disaster relief fund. A modified version was attached to the FY2006 DefenseAppropriations 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 HUDappropriations bill. It does not adopt the CDBG transfer, and funds most programs between theHouse- and Senate-approved levels.
Key Policy Staff
Division abbreviations: ALD -- American Law; DSP -- Domestic Social Policy; G&F --Government and Finance