\TriceEdneyWire.com — At a time when American families across the country are struggling to cope with rising costs of living, the White House’s Fiscal Year 2027 budget proposal makes clear that federal help for working people is not in the cards.
“A historic paradigm shift in the budget process is occurring and is producing real results for the American public” said Russell Vought, director of the Office of Management and Budget in his comments to Congress.
If approved by Congress, this new ‘paradigm’ will increase defense spending by $1.5 trillion (a 44% increase), while slashing $73 billion from domestic programs that many people have come to rely upon, like rental assistance, career training, and the Low-Income Energy Assistance Program.
In reaction, a chorus of concerned opposition has emerged, demanding that Congress account for how taxpayer dollars will be spent.
For example, the Center on Budget & Policy Priorities summarized its concerns with an April 03 statement: “The public is clear that it is deeply concerned about affordability. Yet the budget either proposes nothing to address core affordability issues or makes them worse. It makes cuts in a range of areas that matter to families, including: education; healthy fruits and vegetables for low-income pregnant and postpartum parents, toddlers, and preschoolers; food assistance for low-income seniors; and utility assistance. It also cuts the number of households who get help paying the rent.”
Other advocates addressed specific concerns on the future of education, housing, and consumer protections.
In response to the proposed $3.2 billion cut to the Department of Education, National Education Association President Becky Pringle said: “This administration is sending an unmistakable message: students, educators, and working families do not matter. It turns its back on students with disabilities, students from low-income families, students who live in rural areas—students that need more support, not less.”
Among the Education Department’s post-secondary programs slated for elimination in FY 2027 are: Student Support Services, Federal Family Education Loans, Supplemental Educational Opportunity Grants, Upward Bound, and Career, Technical, and Adult Education.
Proposed cuts to housing programs are even more severe: $10.7 billion. An analysis by the Bipartisan Policy Center showed that HUD programs affected by the cuts include:
- $4.6 billion to eliminate Community Development Block Grants (CBDG)
- $922 million cut to homelessness assistance
- $285M reduction in rental assistance that helps the elderly and people with disabilities
- $206 million from family self-sufficiency and job training programs
- $60 million to eliminate programs for fair housing investigation, enforcement and training programs
Last year, nearly six million consumers (a 200% increase) filed reports with the Consumer Financial Protection Bureau (CFPB) complaint database. Although federal court rulings denied the Trump administration’s efforts to shutter the agency, the FY 2027 budget now proposes an 84% cut to examination staff, from 463 to just 75 people.
Such a severe staff cut would leave remaining employees unable to fulfill the agency’s statutory duties that span investigations, supervision, enforcement, and community outreach. At the same time, financial bad actors would get a green light to continue predatory lending, financial scams, and junk fees—all of which siphon off hard-earned consumer dollars.
“The CFPB cannot meet its statutory obligations at these bare bones staffing levels and the resulting lack of oversight will help bad financial services firms evade compliance with longstanding federal consumer protection laws and regulations,” said Graciela Aponte-Diaz, vice president of community engagement at the Center for Responsible Lending’s (CRL) Julian Bond Institute. “The CFPB already has cancelled enforcement actions that would have returned hundreds of millions of dollars to consumers.”
Similar comments came from Tom Feltner, associate director of Consumer Policy at Americans for Financial Reform.
“Rather than cutting enforcement, supervision, and outreach staff, we should be strengthening the capacity of those offices to hold financial wrongdoers accountable, prevent emerging risks like those that caused the 2008 financial crisis, and prevent the wave of scams making everyone’s lives more difficult and more expensive,” said Feltner.
For Black America, already financially short-changed by nagging wealth inequality, the nation’s affordability crisis worsens our ongoing quest for full participation in this nation’s opportunities.
Our hopes and dreams still yearn to know and enjoy America’s bounty, and not just its disproportionate burdens. A fair federal budget enacted by Congress is not only appropriate but deserved.
(Charlene Crowell is a senior fellow with the Center for Responsible Lending. She can be reached at <Charlene.crowell@responsiblelending.org>.)
