By Eugene T. Lowe
April 26, 2004

The Administration is not waiting for Congress to approve a new policy proposed in its FY05 budget, which would essentially block grant Section 8 Housing Choice Vouchers to public housing authorities at a reduced funding level. A Washington Post article on April 21 reported that part of the proposal is moving ahead through regulation. The article stated, "The government no longer is promising to pay the full cost of rent vouchers that help nearly 2 million poor families."

Currently, the Department of Housing and Urban Development (HUD) allots public housing authorities a certain number of vouchers each year. They then reimburse the cost of each voucher. HUD is now proposing to allocate each housing authority funds based on its previous costs, adjusted by inflation. The article said this formula is not guaranteed to keep pace with rent increases.

The administration contends that the costs of Section 8 must be constrained, contending that the program's spending is spiraling out of control. However, local housing authorities say that the new HUD rule will leave them far short of covering the costs of their vouchers.

Senator Barbara Mikulski Responds

The new HUD policy has been greeted with a good deal of criticism. Typical of the comments are those of Senator Barbara A. Mikulski (MD) in a letter to new HUD Secretary Alphonso Jackson. In the letter the senator said: "I was shocked to read in The Washington Post today that the Department is proposing new, and potentially damaging, rules for the Section 8 program. The paper reports that the Department will not renew vouchers at payments high enough to keep pace with rent increases. This is unacceptable. HUD must take the necessary steps to ensure that every voucher currently in use stays in use."