Bu$hCo. ready to slash poor people anti-poverty programs.
The White House will seek to drastically shrink the Department of Housing and Urban Development's $8 billion community branch, purging dozens of economic development projects, scrapping a rural housing program and folding high-profile anti-poverty efforts into the Labor and Commerce departments, administration officials said yesterday.
The proposal in the upcoming 2006 budget would make good on President Bush's vow to eliminate or consolidate what he sees as duplicative or ineffective programs. Officials said yesterday that economic development programs are scattered too widely in the government and have proved particularly ineffectual at HUD.
Advocates for the poor, however, contended that the White House is trying to gut federal programs for the poorest Americans to make way for tax cuts, a mission to Mars and other presidential priorities. Administration officials would not say how much the consolidation would save, but it could lead to steep funding cuts. That is because the HUD programs would have to compete for resources in Commerce and Labor budgets that are not likely to expand to accommodate the shuffle.
"I'm always willing to look at consolidation, but clearly they're using consolidation as a shield for substantial budget reductions," said Rep. Barney Frank (Mass.), the ranking Democrat on the Financial Services Committee, which has jurisdiction over housing and community development programs.
The plan was detailed in a December memo from the White House Office of Management and Budget to HUD. The document provides one of the first concrete examples of the types of cuts in the works as the administration comes to grips with a soaring deficit.
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Congressional housing aides say the $4.7 billion Community Development Block Grant (CDBG) program -- the bulk of the community planning budget -- could be cut as much as 50 percent. Cities have become dependent on HUD's development programs, especially the CDBG, which has existed for 30 years, city officials said. Stanley Jackson, director of the D.C. Department of Housing and Community Development, said the city has used CDBG grants of $21 million to $22 million a year for clinics, recreation centers, day-care facilities, literacy programs and housing development.
With housing and property values skyrocketing, the need for such programs for low-income families has never been higher, he said.
"If this is a backdoor way of eliminating a program like CDBG, it would have a profoundly negative impact on cities," said Jim Hunt, a vice president of the National League of Cities and a city council member in Clarksburg, W.Va.
Under the plan, the CDBG program -- which provides multipurpose development grants to state and local governments -- would be sent to the Commerce Department. The Urban Empowerment Zones and the Renewal Community programs -- both of which offer tax incentives for development in urban or other troubled areas -- would also go to Commerce, as would the Brownfields Economic Development Initiative, designed to revitalize abandoned industrial sites.
