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Budget Cut: White House Officials Intend To Cut Housing Aid To $150 Billion; Progressives Fight for the Aid

Legislators and White House officials considered slashing the country's housing aid drastically (Photo: Schroders)

Democrat lawmakers and White House officials considered a major cut for the country’s housing aid. Progressives stand against the proposal.

Last month, Maxine Waters, the House Financial Services Chair, signed off $327 billion intended for housing aid under the Build Back Better Act. However, President Joe Biden outlined his intention to decrease housing funds in his massive social spending plan earlier this week. Waters and Senate Banking Committee Chairman Sherrod Brown opposed Biden’s plan and swore to address the reduction of housing funds.

Congressional leaders directed Waters’ committee to draft policies reaching $150 billion for the housing aid cut. On October 22, Friday, White House officials and other democratic leaders are considering the suggested budget cut for the $327 billion initial housing aid. Three sources from Politico, who was present during the discussion, stated that officials were considering a cut between $150 billion and $175 billion.

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Maxine Waters

Maxine Waters hopes to save the housing aid funds after the White House committee proposed funding cuts (Photo: The Hill)

Progressives Fights For The Housing Aid

The proposed cuts are creating animosity among Progressives who are trying to protect programs included in what was initially a $3.5 trillion proposal. The House Financial Service Committee is under pressure from housing organizations and industry lobbyists to increase the top line further.

Waters stated in a press conference that she acknowledged the possible cuts in all areas under the Build Back Better Act; however, she stressed that the cuts should be made fairly. According to Diane Yentel, president and CEO of the National Low Income Housing Coalition, funding cuts should not come at the expense of sheltering the lowest-income citizens.

The Progressives established various movements to increase the housing funds and this includes Yentel’s letter for the congressional leaders, which 1,763 housing advocacy groups have signed. However, Capitol Hill officials stated that the situation is fluid and that no figures would be finalized and approved until the framework is finalized and approved.

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