By Eugene Lowe, Kevin McCarthy, and Laura DeKoven Waxman
November 7, 2011

The Senate adopted an FY 2012 “minibus” appropriations package November 1 on a vote of 69-30, which combines the Agriculture, Commerce-Justice'science and Transportation-HUD spending bills. The bill provides a total of about $128 billion in discretionary spending, not including emergency disaster funding. A conference with the House began two days later and is expected to complete its work during the week of November 14.

The bill would cut funding of the Department of Housing and Urban Development from $40 billion in FY 2011 to $39 billion in FY 2012. Among cuts in HUD programs:

• CDBG would be reduced from its FY 11 funding level of $3.34 billion to $2.85 billion in FY 2012, a 14.5 percent cut. The House funded the program at $3.5 billion, a five percent increase.

• HOME Investment Partnerships program would be cut from $1.6 billion to $1 billion.

• CDBG administrative costs would be allowed by the Senate to remain at 20 percent, while the House would reduce the costs allowed to ten percent.

• HUD Homeless Assistance Grants would be funded at $1.9 billion, which is also the funding level approved by the House. The Housing Opportunities for Persons with AIDs (HOPWA) program would be funded at $330 million; the House would fund the program at $334 million, the FY 2011 level. The Section 202 Housing for the Elderly program would be cut to$369 million, while the House increased the program to $600 million. The program was funded at $400 million in FY 2011.

• Both the Senate and House cut the Public Housing Capital Fund; the Senate would provide $1.875 billion; the House, $1.532 billion. The Public Housing Capital Fund received $2 billion in FY 2011. The Senate would provide $3.96 billion for the Public Housing Operating Fund, while the House would provide $3.86 billion. The operating fund was $4.6 billion in FY 2011. Both the House and Senate would allow HUD to use excess reserve funding for operating costs. The House would allow $1 billion to be used from the reserve fund while the Senate would cap the use of the reserve fund at $750 million.

• The Senate and House approved Section 8 Tenant Based Rental Assistance at $18.87 billion and $18.46 billion, respectively.

While the bill would provide $26.9 billion to the Department of Justice, two percent less than is available this year, it would cut state and local law enforcement activities by 17 percent below last year’s level to $2.3 billion. Specifically, it would provide:

• $232 million for Community Oriented Policing Services (COPS) grants, 19 percent below this year’s level of $247 million. This includes $200 million to hire or retain roughly 1,500 police officers. The House version of the bill provided no funding for COPS.

• $1 billion for state and local law enforcement assistance, including Byrne formula grants, the State Criminal Alien Assistance Program, bulletproof vests, and DNA backlog grants. Within this Byrne Justice Assistance Grants would be funded at $395 million, $28 million (seven percent) below this year’s level, but $38 million more than the House bill would provide.

• No funding for Second Chance reentry programs, which are funded this year at $83 million. The House version would provide $73 million for Second Chance.

• $251 million for juvenile justice and delinquency prevention, $128 million more than the House bill would provide, but 41 percent less than is available this year.

• $418 million for domestic violence and sexual assault grants, the same amount as is available this year, but $20 million less than the House bill would provide.

The Senate rejected 57-43 an amendment offered by Virginia Senator Jim Webb that would have established and provided funding for a national criminal justice commission charged with conducting a comprehensive review of the criminal justice system and reporting its findings and recommendations. The Conference of Mayors adopted policy in support of the commission’s establishment at its annual meeting last June.

Most Key Transportation Accounts Held at Current Funding Levels

One of the top priorities for the leadership of the Senate Appropriations Committee this year was investing in transportation infrastructure. As such, the bill preserves at least current level funding for most transportation programs. Specifically, it would provide:

• $41.1 billion for the Federal-aid Highway program, which includes funding for the core program accounts (e.g., Interstate Maintenance, Bridge, National Highway System, CMAQ and STP) as well as many other smaller program initiatives. This funding level is the same as the fiscal year 2011 enacted level.

• $10.629 billion for Federal Transit Administration programs, compared to $10.3 billion funding for last year. The increase in funding is largely due to a boost in funding for FTA’s “New Starts” program, which was increased by $358 million to $1.955 billion.

• $550 million for TIGER grants, a slight increase over the prior year, to support another round of competitive grants in support of various modal transportation projects, with the DOT Secretary directed to allocate no less than $120 million for projects in rural areas.

• $3.515 billion for capital investments at the nation’s airports through FAA’s Airport Improvement Program, the same funding level as last year.

• $1.48 billion is provided for Amtrak and $100 million in grants to support state initiatives to develop high'speed rail services. While Amtrak’s overall funding level is about the same as last year, operating funds were reduced by $17 million.

The Senate on a 59-39 vote tabled an amendment offered by Arizona Senator John McCain that would have prohibited the use of any Transportation-HUD funds for scenic or historic highway programs, landscaping, scenic beautification, historic preservation or billboard control efforts, among other restrictions.