Damaging Changes In Section 8 Housing Program

The Senate recently approved legislation funding the Department of Housing and Urban Development for FY 2002. While this bill restores public housing cuts proposed in President Bush's budget, it contains provisions damaging to the Section 8 housing voucher program and the project-based Section 8 program. It funds the Section 8 voucher program at a level below the President's request, providing fewer incremental vouchers than the Administration's budget. It also contains a $640 million reduction in the Section 8 voucher program reserves that the Administration proposed. Finally, the Senate bill contains an unprecedented, far-reaching rescission of Section 8 funds that was not included in the Administration's budget or the House VA-HUD bill and that is likely to cause problems in the future for the financing of the Section 8 program. Some 80 percent of the rescinded Section 8 funds would be transferred to non-housing programs.

Thanks to Electronic Policy Network