Catholic Charities USA: President's budget hurts low-income families

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February 5, 2008

Catholic Charities USA: President's budget hurts low-income families
With its deep cuts to key health, housing, and social service programs, Catholic Charities USA today urged Congress to reject the president's 2009 budget proposal and instead craft a budget that strengthens key antipoverty programs.

The proposed $3 trillion budget released on Monday contains significant cuts and changes to a range of programs that address the health and well-being of low-income families and individuals, including Medicare, Medicaid, and LIHEAP.

"At a time of great economic uncertainty facing millions of Americans, especially for the 36.5 million already living in poverty, more must be done to help lift families out of poverty," said Father Larry Snyder, president of Catholic Charities USA. "Unfortunately, the president's budget hurts our nation's most vulnerable by whittling away America's safety net."

As demand for services continues to increase at Catholic Charities across the country, it is critical that Congress take concrete steps, starting with the federal budget, to help low-income families. According to a survey of local Catholic Charities released late last year, a growing number of people are coming to Catholic Charities for help, especially food. Between 2002 and 2006, the number of clients receiving assistance with food increased by 2.7 million, or nearly 60 percent. Furthermore, requests for temporary shelters increased 24 percent over the past five years.

"With more and more working poor turning to Catholic Charities for help, strengthening programs that reduce poverty must be given a higher priority by Congress and this Administration," said Snyder.

Among the most troubling cuts are in the following areas.

Health Care. The budget cuts $12 billion in 2009 and $180 billion over five years to the Medicare program and calls for another $17 billion in cuts to Medicaid over five years. And, while the president's budget requests $20 billion for the State Children's Heath Insurance program (SCHIP) through 2013, these additions fall well short of keeping pace with the children currently enroll in SCHIP.

Housing. While it is commendable that the president has proposed more funding for the U.S. Department of Housing and Urban Development-including budget increases to help homeowners avoid foreclosures-other key antipoverty programs were cut. Most troubling among these recommendations are cuts to the Housing for the Elderly Section 202 Program and the Housing for Persons with Disabilities 811 Program. Once again, the president has proposed to eliminate the HOPE VI Program, which helps to revitalize and transform the severely distressed public housing program.

Economic Security. The administration's budget makes almost $2 billion in cuts to critical programs under the U.S. Department of Health and Human Services' Administration of Children and Families. These critical program included child care and child welfare services. In addition, when most of the country is experiencing high energy costs, the budget makes a $500 million reduction to the vital Low Income Home Energy Assistance Program (LIHEAP). The president's budget also fully eliminates the Community Services Block Grant (CSBG), which supports community action agencies that administer energy assistance, weatherization programs, Head Start, and other critical services to vulnerable populations. The budget also cuts by $500 million the Social Services Block Grant program, which provides critical services to low-income children in the child welfare system and many elderly Americans.

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