Congress Doubles Funding for Troubled USDA Housing Loans
Obama Authorizes an Increase from $12 to $24 Billion
Posted by: RET Staff
While slashing funds for disability, elderly, homelessness and Native American housing programs, Congress has doubled the funding for a USDA housing program that may cost the government $4 billion in defaulting loans because over a third of the government-guaranteed rural home loans in its portfolio may be ineligible for the program.
On April 15, the President signed into law the continuing resolution to fund the government that, despite concern over the deficit, included increased funding for the USDA’s Rural Development Service’s Section 502 single family guaranteed loan program from $12 to $24 billion annually for the current year as well as the next Federal fiscal year.