The Mortgage Bankers Association explained that a look at President Donald Trump’s budget, which includes a $6.2 billion cut to the U.S. Department of Housing and Urban Development, makes a political statement of priorities.
In addition to the HUD funding cut, the budget defunds several other agencies such as NeighborWorks America and 18 others.
The budget the Trump administration just released is only a preliminary budget proposal, and the full federal budget will be released later this spring.
“This blueprint is not the full federal budget, however it does provide insight into the policy priorities of the President and his Administration,” the MBA said in its analysis.
In fact, what can be just as important as what the budget includes, is what it doesn’t include. The preliminary budget does not address funding for the Securities and Exchange Commission or any sub-agency funding for programs such as the Federal Housing Administration and Ginnie Mae.
“It’s vital to understand that today’s Budget Blueprint is as much a political statement of priorities as it is a governing document, and that Congress is unlikely to go along with many of its more stringent spending reductions,” the MBA stated.
But housing isn’t the only agency to see cuts. The African Development Foundation, Corporation for Public Broadcasting, United States Institute of Peace and many others will also lose their funding in the new budget plan.
Despite the administration’s lack of focus on housing programs, the MBA promises to continue to work to strengthen real estate markets.
“The backdrop of these significant agency funding cuts creates a difficult road ahead for many federal programs,” the analysis reads. “MBA will work to ensure that the government continues to support vibrant real estate markets that grow and strengthen America’s communities through the continued funding of Federal Housing Administration, Veterans Affairs and Rural Housing Service programs.”
But as for the funding cuts, HUD secretary Ben Carson and HUD itself expressed their support for the new budget, saying it supports better efficiencies.
However the budget has also met with opposition from Congress. Rep. Maxine Waters, D-Calif., expressed her strong opposition to the budget.
“This a dangerous budget, but we only know part of it,” Waters said. “Trump’s massive cuts to housing and economic development programs would put millions of Americans and their communities at risk.”
Once the full budget is released, Congress will consider it in parts and may accept, decline, or modify each section.