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President Biden and congressional leaders are expected to meet today (May 16) to continue negotiations to raise the nation’s debt ceiling, after staffers spent the weekend hashing out a prospective deal. The nation could default on its debt as soon as June 1 if congressional leaders and the White House do not reach an agreement to lift the debt ceiling.
Despite the likely harm posed by a default, House Speaker Kevin McCarthy (R-CA) and fellow House Republicans say they will only lift the debt ceiling in exchange for steep cuts to domestic programs, including drastic cuts to HUD’s and USDA’s vital affordable housing and homelessness programs that could reduce funding to these programs by as much as 22%, depending on how cuts are made.
It is critical for advocates to reach out to their members of Congress and urge them to oppose these harmful cuts.
TAKE ACTION NOW!
Keep the momentum going: Speak out against budget cuts and push Congress to make necessary investments in housing and homelessness programs through NLIHC’s #SpringIntoAction campaign through May 19! Join advocates around the country who are expressing to their members of Congress the devastating toll that these cuts would take on their communities through phone calls, emails, and creative expressions, such as poems and visual art.
Here are some ways to take action:
We’ve also gathered additional resources to strengthen your advocacy efforts, including:
Background
House Republicans voted to approve the “Limit, Save, and Grow Act” on April 26 to temporarily lift the debt limit in exchange for reducing fiscal year (FY) 2024 spending to FY22 levels and capping future spending increases at 1% annually for 10 years, which would result in at least a 23% reduction in funding for key housing and homelessness programs. According to HUD Secretary Marcia L. Fudge, such cuts would “represent the most devastating impacts in HUD’s history” and “make it impossible to stave off mass evictions.” Nearly 1 million households could lose HUD rental assistance, and nearly 120,000 fewer people experiencing homelessness would be served. USDA also released a statement suggesting that up to 63,000 rural households would lose rental assistance if the Republican budget passes. The bill would also rescind unobligated COVID-19-relief funding and put in place rigid work requirements for some anti-poverty programs, among other harmful provisions.
While the Republican bill is unlikely to pass in the Senate, its passage in the House puts more pressure on President Biden and Senate Democrats to negotiate with Speaker McCarthy over spending cuts to key programs. Congressional leaders must reach a deal to lift the debt ceiling by as soon as June 1, according to the U.S. Department of the Treasury, or risk a default, which could cause widespread economic turmoil. President Biden met with the “four corner” Congressional leaders – Speaker McCarthy, House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader Chuck Schumer (D-NY), and Senate Minority Leader Mitch McConnell (R-KY) – on May 9 to begin debt ceiling negotiations. The leaders are expected to meet again today (May 16) to continue discussions after their staff worked through the weekend to find a compromise.
With the June default deadline fast approaching, the leaders are looking for areas of common ground to help reach a deal. Some potential areas of compromise include:
- Increased work requirements for anti-poverty and anti-hunger programs, including the Temporary Assistance for Needy Families (TANF) program and Supplemental Nutrition Assistance Program (SNAP).
- Rescinding unspent COVID-19 aid.
- Potential shorter-term budget caps on federal spending, lasting up to two years.
It is crucial that Congress not enact policies that increase poverty and hardship, especially for people with the lowest incomes. Members of Congress must look beyond dollar amounts and grasp the human cost of cutting and capping federal spending for affordable housing and homelessness programs. Such steep budget cuts would make it much harder for people experiencing homelessness to find stable homes and put nearly 1 million of the lowest-income renters at risk of eviction and homelessness by cutting their housing assistance. Housing provides the foundation for stability in all other aspects of life. Many households, if they were to lose HUD assistance, would struggle to put food on the table, stay healthy, and access employment and educational opportunities.
Please reach out to the NLIHC Field Team at outreach@nlihc.org with questions.
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