As Overall Progam Funding for USDA Rural Development Shrinks, The Need for Rental Assistance Has Grown

Section 521 Rental Assistance is the single largest line item for ongoing programs within the USDA/Rural Development budget. This has been the case for most years since at least Fiscal Year 2006. While this is not a new development, it is important to understand the bigger picture. Since FY 2010, total funding for Rural Development’s ongoing programs has been declining. At the same time, funding for Rental Assistance has been relatively steady or increasing. Annual Rental Assistance needs are expected to keep rising. Given the current strong trend towards reducing government spending, Rental Assistance costs threaten to take over funding for the rest of USDA’s rural housing programs, and even other programs that fall in the Rural Development section of the department.