FOR IMMEDIATE RELEASE February 28, 2005	Contact: Michele Anapol (202) 466-2121 x226 manapol@nhc.org

Statement by Conrad Egan,
President and CEO of the National Housing Conference

Prepared in Response to the Administration’s FY 2006 Budget Proposal to
Cut Domestic Funding by a Staggering $214 Billion Over the Next Five Years

“The Bush Administration included a request to set statutory limits on overall discretionary spending for each of the next five years in its recently released FY 2006 Federal budget proposal. This proposed five-year cap on spending for domestic discretionary programs would devastate the nation’s housing and community development programs funded through appropriations. When compared to enacted FY 2005 funding levels, it is estimated that domestic funding through the annual appropriations process would have to be cut by a staggering $214 billion over the next five years when adjusted for inflation, and by $66 billion in 2010 alone.

These disturbing findings were recently presented at NHC’s annual Budget Forum by the Center on Budget and Policy Priorities and were also detailed in an opinion editorial written by well-known and respected columnist David Broder.

There is no question that the proposed caps are harmful and will drastically reduce the effectiveness of programs created to address homelessness and housing for low- and moderate-income households. Additionally, because many housing and community development programs are already under-funded, the added spending cap will only further undermine these programs. Lastly, the Administration’s recent practice of failing to provide budget information beyond the upcoming budget year impedes the ability to analyze budgetary impacts and veils the potentially destructive effect the proposed cuts will have on other programs and to the volumes of Americans who rely on discretionary programs.

NHC asks that Congress not accept discretionary spending caps and that housing and community development programs are fully funded at levels necessary to effectively and efficiently address the nation’s housing and community development needs.”