Sen. Paul believes that education and housing should not be within the purview of the Federal government. From a statement detailing his proposed $500 billion in spending cuts, which says that HUD should have a "100% decrease" in funding:
"Rather than providing a one-time stop for families on their way out of poverty, public housing has largely been a failure. Public housing projects have become havens of crime and dysfunction, driving away the very business investment and homeowners that would revitalize a city block."
Paul also blames HUD for playing a role in the current housing crisis by "fostering subprime lending."
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Rand also proposes slashing DOT by half, using the same tendentious reasoning for all of his arguments.
He is just trying to draw attention to himself, of course, but there is an interesting kernel of an idea there--albeit misplaced. Instead of eviscerating programs that most Americans want, why not remove states from the Union that do not pay their way with taxes? Take Kentucky for example. According to the Koch Brothers tool the "Tax Foundation," Kentucky takes in $1.50 for every $1 they send to Washington--while Californians get back only 78 cents for each buck they send to DC.
If Rand is all about freedom and paying for what you get, he should surely support a dollar for dollar exchange. If not, why not just do away with Kentucky? Who needs it anyway?