Senate OKs $38-Billion Housing Bill Held Too Costly by Reagan

The Senate on Tuesday approved and sent to the House a two-year, $38.3-billion reauthorization of federal housing programs opposed by the Reagan Administration as too costly.

The Senate voted 71 to 27 for final passage after two days of debate in which Sen. Jake Garn (R-Utah), ranking Republican on the Banking Committee, called the measure a “budget buster.”

Congress has not enacted a free-standing authorization bill for federal housing programs since 1980 because of disagreements between congressional Democrats who want to protect existing programs and Republicans who back Administration proposals to cut housing funds. Instead, housing proposals have been approved through a series of stopgap funding measures.

‘Objectionable Provisions’

The Administration said it strongly opposes the Senate-passed bill “because it does not contain important Administration initiatives and includes objectionable provisions.”

Overall, the bill would authorize $18.8 billion next year and $19.5 billion in 1989 for housing programs administered by the Housing and Urban Development Department.

Before final passage, the Senate rejected an amendment to eliminate $225 million in each of the next two fiscal years for the Urban Development Action Grants program, which provides money to induce private investors to join in revitalization projects.