The Trump Administration and Moderate and Low Income Americans

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I wrote in the past about how the Trump administration negatively affects the poor. We have more details about the administration’s actions. There will be significant cuts to the Department of Housing and Urban Development’s (HUD) budget. Lorraine Woellert with Politico writes:

In all, the request cuts funding by some $6 billion for fiscal year 2018, to about $40 billion. The draft, dated May 4, might not reflect the administration’s final spending request, which is expected next week. A HUD spokesman did not respond to requests for comment.

The document puts increased responsibility on state and local governments and calls for the private sector to do more to meet community needs, a key goal of HUD Secretary Ben Carson.

The budget “recognizes a greater role for state and local governments and the private sector in addressing community development and affordable housing needs,” the document states.

Skeptics say some of those programs exist precisely because private money hasn’t stepped up.

“Private companies won’t build water and sewer; they expect the cities and counties and states to provide this infrastructure,” said Matt Chase, executive director of the National Association of Counties.

“They’ve taken the Heritage Foundation budget, and we’re trying to educate them on the real-world impact,” Chase said. “This is no longer a think tank exercise.”

The biggest cut would eliminate the $3 billion Community Development Block Grant program, a state and local entitlement that benefits low- and moderate-income communities. The grants support a range of economic development projects, including roads, sewers and housing.

The administration actually thinks the private sector will attend to the needs of these communities. Cuts of this magnitude will shift the financial burden to state and local municipalities. A more likely outcome will be that these areas will be neglected in the exact spots impacted by the monetary loss. That’s not all:

Rental assistance to tenants would fall by $974 million, to $19.3 billion, with the elimination of a housing program for veterans and reduced spending on Section 8 and other voucher programs. Capital funding for public housing would fall by two-thirds.

I wonder how much monetary loss the rich has experienced during this administration.

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