The costly task of helping Texans and Louisianans rebuild after Hurricane Harvey has the Trump administration rethinking its plans to “drain the swamp” at the federal government’s key housing agency, Bloomberg reports.
The U.S. Department of Housing and Urban Development’s has committed to helping storm survivors rebuild. It’s efforts will likely include federal subsidies to offset rental costs and aid for homeowners at risk of foreclosure.
The White House’s response to Harvey will probably result in HUD being showered with cash, a shot in the arm that would make most agency heads gush. The expected increase in funding for HUD shows how events—particularly disasters—can scuttle a president’s agenda.
In May, the Trump administration urged Congress to reduce HUD’s annual budget by more than $6 billion, or about 13%—including slashing a grant program lawmakers used to provide funding after Hurricane Katrina, Superstorm Sandy and the terrorist attacks of September 2001.
“A good question is what is going to be HUD’s response to this: Are they going to call for more funding?” says Guy Cecala, publisher of Inside Mortgage Finance. “They had across the board cuts planned. Nothing was really sacred.”
