Just last month, the Congress allocated spending to the federal government for fiscal year 2017 (FY17). Now the process starts anew for FY18 which spans October 1, 2017 through September 30, 2018. The Trump administration released the 2018 Budget of the U.S. Government: A New Foundation for American Greatness on May 23, 2017.

The headline from the Center on Budget Policies and Priorities conveys the crisis if the President’s vision of greatness is enacted, “Trump Budget Would Increase Homelessness and Hardship in Every State, End Federal Role in Community Development”. The budget offers up large tax cuts for the wealthy along with increases in defense spending and border security. It proposes to pay for these tax expenditures and expenses through deep cuts to federal safety net and community development programs. The President’s budget proposal begins the process. It is a proposal and these drastic cuts and bad proposals can be stopped with your advocacy as outlined below. Congress writes the actual budget and directs funding through appropriations, not the President.

If enacted by Congress, this budget would cut $54 billion from programs designed to meet human needs and develop communities in FY18, and $1.4 trillion over 10 years. These cuts include transportation, workforce development, community economic development, housing, aging, clean water and air, youth and other non-defense discretionary spending.

Diane Yentel, President and CEO of the National Low Income Housing Coalition said in a blog post, “If enacted, Mr. Trump’s budget would exacerbate the growing affordable rental housing crisis in every state and community across the nation, and it would represent a clear departure from the belief that everyone deserves an affordable place to call home.”

The budget proposes the complete elimination of programs and agencies:

• Community Development Block Grants (CDBG)
• HOME Investment Partnerships Program (HOME)
• Choice Neighborhoods program
• National Housing Trust Fund
• Corporation for National and Community Services (AmeriCorps)
• Legal Services Corporation
• Neighborhood Reinvestment Corporation (NeighborWorks)
• Interagency Council on Homelessness
• Low Income Home Energy Assistance Program (LIHEAP)
• Community Services Block Grant (CSBG)
• Transportation Investment Generating Economic Recovery (TIGER) grant
• Economic Development Administration
• Minority Business Development Agency

For FY18, the impacts at various federal agencies are sizeable. The Environmental Protection Agency (EPA) receives a $2.6 billion or 31 percent cut as compared to FY17. The Department of Labor’s reduction is $2.5 billion or 21 percent. The Department of Health and Human Services (HHS) is cut by $7.8 billion or 16 percent. The Department of Commerce cut is $1.5 billion or 16 percent; while the Department of Transportation is cut by $2.4 billion or 13 percent. The Department of Housing and Urban Development (HUD) cut is $4.3 billion or 12 percent; and Energy by $1.7 billion or 6 percent.

Indiana’s loss from the elimination of the CDBG program is $60,543,482 and the HOME program impact is $18,671,931. In addition to the program eliminations listed above, the budget proposal eliminates Section 8 Housing Choice Vouchers for more than 250,000 low-income households. The budget requests $17.6 billion to renew housing vouchers— $771 million less than policymakers provided for 2017 and $2.3 billion less than estimated need in 2018. In Indiana, more than 4,000 vouchers representing real families would lose assistance next year.

The Public Housing Operating Fund is cut by $500 million, while the Public Housing Capital Fund would be reduced $1.31 billion. The Indiana impact is $20,217,861 less for operating. Related policy proposals include increasing tenant rent contributions for public housing to 35 percent of a family’s monthly income and eliminating utility allowance reimbursements. The budget document includes policy proposals affecting the Rental Assistance Demonstration (RAD) initiative including lifting the cap on participation making Section 202 Housing for the Elderly units eligible for participation. The budget request proposes cutting funding for Homeless Assistance Grants, Housing Opportunities for Persons with AIDS (HOPWA) and Housing for Persons with Disabilities. Homeless Assistance grants are cut $133 million.

The budget proposal decimates the US Department of Agriculture’s programs. Funding for Single Family Direct Loans, Rural Housing Repair Loans, Farm Labor Housing Loans, and Section 515 Multifamily Rental Housing Direct Loans would all be eliminated. 502 Direct Loan and 504 Home Repair Programs provide low-cost loans for the purchase or repair of housing for low-income borrowers that live in rural communities. The budget preserves the 502 Guaranteed Loan Program, where loans made by intermediary lenders are backed by the government, but at a much lower level than what was budgeted for FY17. Section 523 Rental Assistance would be cut by $55 million.

The President’s budget calls for restructuring the Consumer Financial Protection Bureau (CFPB) in ways that impair its ability to protect consumers and pursue bad actors defrauding consumers. If enacted as proposed, the CFPB's current funding of $650 million would see an immediate 22 percent cut in FY18. In calling for structural changes, the budget mirrors efforts on Capitol Hill—such as The Financial CHOICE Act of 2017—which would leave countless consumers susceptible to predatory products, services and behaviors. Read about Prosperity Indiana’s recent efforts on Capitol Hill dealing with the CHOICE Act on the Indiana Assets & Opportunity Network blog.

Safety net programs experienced large cuts as well in the proposed budget. For programs that are managed jointly between federal and state governments, such as the Supplemental Nutrition Assistance Program (SNAP) and Medicaid, there is a massive cost shifting to the states that would put growing pressure on state budgets in the years to come. SNAP faces a $4.6 billion cut in FY18 and a cut of over $190 billion over the next decade. Temporary Assistance for Needy Families (TANF) is reduced by $1.2 billion in FY18. Much of the savings from TANF and SNAP come from the administration’s proposal to tighten eligibility requirements for benefits and “encourage” work.

The proposal includes changing the funding formula for Medicaid and the Children’s Health Insurance Program, making $600 billion in cuts over 10 years. Included in the Medicaid changes are setting annual limits on federal payments to each state in 2020. The budget proposes to expand on the drastic proposals in the American Health Care Act (AHAC/Trumpcare/Ryancare). The budget proposes to restructure the financing system for the Medicaid program by capping federal Medicaid funding on a per-person or per-state basis. This results in a reduction of federal Medicaid funding and tens of millions of people becoming uninsured according to Congressional Budget Office analysis.

Social Security disability programs are reduced by $72 billion over the next 10 years. These cuts result in changing Social Security Disability (SSDI) from 12 month retroactive payments when someone is accepted to the program to six month retroactive payments and creating a sliding scale for families receiving Supplemental Security Income (SSI) who have multiple recipients within the household. Changes to SSDI also test “new approaches to increase labor force participation” with work requirements.

Across federal agencies, other drastic cuts reduce resources for building resilient families and vibrant communities. These include the elimination of federally subsidized student loans, as well as the public service loan forgiveness program for nurses, policy officers and teachers.

Programs focused on climate change, water quality, and chemical safety, and “safe and sustainable water resources,” would be substantially reduced. Estimated cuts to the EPA reduce funds to Indiana by $8.9 million that protect public health. The EPA budget proposal includes $100 million in cuts for the Clean Power Plan, international climate change programs, and climate change research and partnership programs.

Prosperity Indiana urges you to act and voice your concern to Congress.

Reach out to your members of Congress. The only way to stop these drastic cuts is by calling your Representatives and Senators and telling them you oppose the President’s budget proposal and why. Include details on how cuts impact you, your programs and your community. Share personal stories and data on the impact federal programs. Use the Prosperity Indiana's Policy Action Center to find your member of Congress and contact them directly. Get advice on storytelling from Prosperity Indiana’s Ways and Means podcast.

Other strategies for advocacy include inviting members of Congress and their staff to your organization, your housing development or program so they can see the impact these programs make. Write an op-ed in your local paper. Sign your organization onto the most recent letters urging protection of key programs. Find the list from Prosperity Indiana’s partner, the National Alliance of Community Economic Development Associations here.

Stay up to date on the budget process, the latest developments, and ways to engage with Members of Congress and stop bad policy and drastic cuts from being included in the final budget. Join in membership today. Signing up is the best way to stay informed and be alerted when it is time to act.