Bush Plans Sharp Cuts in HUD Community Efforts

The White House will seek to drastically shrink the Department of Housing and Urban Development's $8 billion community branch, purging dozens of economic development projects, scrapping a rural housing program and folding high-profile anti-poverty efforts into the Labor and Commerce departments, administration officials said yesterday. The proposal in the upcoming 2006 budget would make good on President Bush's vow to eliminate or consolidate what he sees as duplicative or ineffective programs. Officials said yesterday that economic development programs are scattered too widely in the government and have proved particularly ineffectual at HUD. Advocates for the poor, however, contended that the White House is trying to gut federal programs for the poorest Americans to make way for tax cuts, a mission to Mars and other presidential priorities. Administration officials would not say how much the consolidation would save, but it could lead to steep funding cuts. That is because the HUD programs would have to compete for resources in Commerce and Labor budgets that are not likely to expand to accommodate the shuffle. [more]