The Center for Budget and Policy Priorities (CBPP) recently released a report entitled “Estimated Cuts In Federal Housing Assistance and Community Development Programs Due to Sequestration” which details the effects the potential across-the-board funding cuts for most federal programs (sequestration) could have on state housing programs. As a refresher, these cuts had been scheduled to go into effect January 2, but the “fiscal cliff” budget deal enacted by President Obama and Congress delayed the cuts until March 1, 2013. The budget deal reduces the amount to be sequestered in fiscal year 2013 by $24 billion, to $85 billion.
As revised, sequestration will mean a funding reduction of about 5 percent for non-security discretionary programs, including nearly all housing assistance and community development programs.
CBPP estimates that funding for Housing Choice Vouchers will be cut by $971 million which could mean an estimated 113,414 families cut from the program due to sequestration.