While the President s budget has no direct bearing on what happens in Congress, it is an important indicator of where the Administration s priorities lay. One item that the President has already leaked to the public is his proposal for 120,000 new Section 8 vouchers. Last year Congress approved 60,000 new vouchers at the eleventh hour. Although the details of the production program are still emerging, it appears to involve the creation of new units through the low income housing tax credit, with the backing of the FHA insurance fund. This would allow the use of portable vouchers, rather than project-based subsidies, which the Office of Management and Budget opposes.
Advocates are eager to see new subsidies as well as the production of new affordable units.
As for the other programs in the HUD budget, rumors indicate that the White House will include at least level funding for most core programs, and in some cases even slight increases. It now appears likely that both the Administration and the Congress are planning to ditch the severe budget caps enacted in 1997, which could ease the pressure to restrict spending. Although the GOP leadership is eager to use surplus funds for tax cuts, rather than increase spending. Advocates can take some credit if a favorable HUD budget comes out of the White House. A record number of close to 1500 organizations from around the country signed on to a national letter calling for increased housing funds.