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Housing advocates warn GOP spending plan would be ‘disastrous’

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Housing advocates warn that House Republicans’ plan to dramatically cut the federal deficit to raise the debt ceiling would strip rental aid from hundreds of thousands of struggling families, who could face eviction and homelessness at a time when rents are high.

Last month, House Republicans narrowly passed a measure to roll back non-defense spending to 2022 levels, which the National Low Income Housing Coalition said would cut housing and homelessness programs by 23%, a major blow to the Housing Choice Voucher rental assistance program that 2.3 million families rely on.

“House Republicans’ plan would have drastic negative impacts on communities’ abilities to address homelessness and the housing crisis,” said coalition CEO and president Diane Yentel to The Associated Press. “These proposals would force communities to take housing assistance from people who need it.”

Republicans hope House Speaker Kevin McCarthy’s measure would compel President Joe Biden to negotiate with them to raise the debt ceiling and ensure the Treasury can pay its debts.

Yentel concerns that Democrats may accept costly housing fund cuts to reach an agreement.

During a 2011 debt ceiling standoff, then-President Barack Obama and then-Speaker John Boehner agreed to automatic annual expenditure cutbacks, which Yentel said crippled the Department of Housing and Urban Development.

Yentel said the Budget Control Act placed stringent spending caps on HUD and other agencies for 10 years. “Even though we haven’t been under those tight spending caps over the past couple of years… we still haven’t made up for all the cuts since 2011.”

She added voucher program funding must increase annually to keep up with inflation and rising rents.

According to realtor.com, median listings rose 16.4% from January 2021 to January 2022, a year after rents peaked. Federal data shows rents jumped 0.6% from March to April. Still high, that’s one of the year’s smaller gains.

“At a time when rents are so high, pandemic-era eviction resources have been all but depleted and homelessness is increasing in many communities—now, more than ever, we can’t afford any cuts to these programs,” Yentel added. They need more funding.

Joel Griffith, a Republican Heritage Foundation research fellow, said HUD funding is out of control and housing aid should be a “temporary assistance program targeted towards those who are truly in need.”

Freedom Caucus member Chip Roy, R-Texas, agreed. What’s too much debt? Roy mentioned national debt. “We must limit spending, so we must do it.”

According to the AP, Democratic Rep. Emanuel Cleaver of Missouri termed the House bill “egregiously offensive” because it “turns a blind eye to public housing and would further diminish our nation’s already short supply of affordable housing.”

At a December congressional hearing on affordable housing, GOP Rep. Patrick McHenry promised to “prioritize housing” and “actually achieve some bipartisan results.”

After four months, McHenry’s House Financial Services Committee has held no housing hearings.

The Financial Services Subcommittee on Housing and Insurance, led by Rep. Warren Davidson, R-Ohio, is similar. Though a subcommittee hearing on mortgages and housing affordability was set for Wednesday, just one of 74 GOP measures addressed to housing.

McHenry spokesman Laura Peavey did not address whether the GOP spending plan would decrease housing significantly. “It’s important to note that after two years of unified Democrat control and trillions in new congressional spending, housing is now less affordable,” she said. Davidson’s spokeswoman declined several requests for comment.

The ranking Democrat on Davidson’s panel, Cleaver, said he has attempted to focus on housing, but Silicon Valley Bank’s failure has consumed members’ time.

Cleaver, who grew up in a two-room Texas home, is “obsessed with housing because I don’t want a single kid to grow up like I did.” He told the AP that SVB’s collapse had dashed his aspirations of elevating housing in Davidson’s panel.

“I don’t see anything that’s going to move us to giving the kind of attention to housing that I think we need,” Cleaver added.

Cleaver has advocated for boosting tax incentives for builders of low-income housing, which he believes may get bipartisan support and help address the growing housing supply gap—realtor.com recently estimated the country is short 6.5 million homes. However, congressional partisanship is a major impediment.

“One of the reasons we have not been able to move with the magnitude and mercy that this housing issue requires is what is happening in the country all too often nowadays, and that’s a bold and short-sighted political need to divide people,” Cleaver added.

The Democrat-controlled Senate finance and banking committees’ affordable housing hearings give Dennis Shea, executive director of the Bipartisan Policy Center’s J. Ronald Terwilliger Center for Housing Policy, hope that Congress will act.

Shea said voters from both parties are complaining about housing affordability. This is not a coastal or metropolitan issue. It’s also a Midwestern, rural problem, and I think Congress knows that.”

The Bipartisan Policy Center has endorsed several housing supply, preservation, and affordability solutions. Shea said increasing low-income housing tax credits and introducing tax credits for low-income families to revive distressed regions will create 2.5 million additional houses over the next decade.

Shea said House Financial Services committee chair McHenry is “very plugged in on the importance of affordable housing.”

“We have to prioritize housing,” Shea added. “Our challenge.”

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Geopolitics & Foreign Policy

Despair in Gaza as fighting intensifies despite Israel’s promise to scale back the war.

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Israeli bombings in southern and central Gaza escalated on Wednesday, despite a commitment by Israel that it would withdraw some forces and transition to a more focused assault, as well as a beg from its partner Washington to decrease the number of civilian fatalities.

The Houthi movement in Yemen, which claims it is acting to help Gaza, launched the most significant strike to date against United States and British warships in the Red Sea. This is the most recent indication that the war, which has been going on for three months, is spreading. Both Washington and London have reported that they were successful in shooting down 21 missiles and drones that were intended for maritime channels. Nobody was wounded in the incident.

Following weeks of pressure from the United States to reduce its operations and transition to what Washington considers to be a more focused campaign, Israel said this week that it intended to begin bringing down forces, at least from the northern portion of Gaza.

However, it seems that the combat is as ferocious as it has ever been, particularly in the southern and central regions, which are the places where Israeli troops made ground gains a month ago.

In response to security concerns, the World Health Organization (WHO) decided to cancel a scheduled medical aid mission to Gaza. This is the sixth time in the past two weeks that such a mission has been canceled.

When an Israeli attack occurred on the major road near Deir al-Balah in the central Gaza Strip, the Palestinian Red Crescent reported that four of its employees were murdered. The strike occurred on the ambulance that they were riding in. The ambulance was carrying two people who were injured and eventually passed away.

More than 23,000 Palestinians have been murdered in Gaza since Israel began its effort to eliminate the Hamas terrorist group that rules the territory. This comes after Hamas members carried out a rampage on October 7 that resulted in the deaths of 1,200 Israelis and the abduction of 240 captives who were held captive.

Gaza’s health officials have calculated that almost forty percent of those who were murdered were under the age of eighteen.

Having lost their family home in an air attack that resulted in the death of their father, Laila al-Sultan, who is seven years old, and her brother Khaled, who is four years old, are currently residing in a tent shanty town in the southern region of Gaza.

“The house collapsed on us, and Daddy went to heaven, and he is very happy,” Khaled remarked as he bounced up and down on Laila’s lap. “The house collapsed on us.”

WARNING FROM HOUTHI

Antony Blinken, the Secretary of State of the United States of America, made his fourth trip to the area since the beginning of the conflict. On Wednesday, he traveled to Ramallah and met with Palestinian officials, including Mahmoud Abbas, the President of the Palestinian Authority (PA), in the West Bank, which is under Israeli occupation.

Even though it recognizes Israel’s right to exist and exercises limited self-rule in the West Bank, the Palestinian Authority (PA) lost control of Gaza in 2007. Hamas, which is committed to the destruction of Israel, took control of Gaza.

Blinken reportedly voiced his support for the establishment of a Palestinian state, emphasized the efforts being made to safeguard and assist people in Gaza, and advocated for “administrative reforms” to be implemented by the Palestinian Authority.

The Palestinian Authority (PA) said that Abbas advised Blinken that no Palestinians should be relocated from Gaza or the West Bank.

Furthermore, Blinken has spoken with officials from Israel and traveled to Arab governments in the vicinity to hunt for a potential settlement for the Gaza Strip and its population of 2.3 million people.

The meeting between Jordan’s King Abdullah and Egyptian President Abdel Fatah al-Sisi occurred in Aqaba on Wednesday. During the meeting, Jordan and Egypt issued a warning against any reoccupation of the Gaza Strip by Israel and made a request that inhabitants who had been uprooted be allowed to return to their homes.

Washington is concerned that the conflict in Gaza might spread bloodshed throughout the region, with armed organizations supported by Iran, Israel’s most opposed nation, unleashing strikes in Lebanon, Syria, Iraq, and Yemen in sympathy with Israel.

The Houthis, who control the majority of Yemen, have been bombing one of the busiest shipping routes in the world, which is located at the mouth of the Red Sea. As a result, the United States government has been forced to send warships to provide security.

According to a spokesman for the Houthi military, the group fired a large number of missiles and drones at a United States ship that was providing support to Israel. The spokesman referred to the attack as a “preliminary response” to an incident that occurred on New Year’s Eve, in which United States helicopters sank three boats carrying Houthi fighters who attempted to board a commercial vessel.

According to Blinken, who made this statement when he was in Bahrain, which was the next stop on his journey, there would be repercussions for ongoing attacks on commercial vessels.

“We’ve also repeatedly tried to make clear to Iran, as other countries have, that the support that they’re providing to the Houthis, including for these actions, needs to stop,” he said to reporters.

The no-let-up

Despite Israel’s public declarations since the New Year that it is reducing the intensity of the battle, the inhabitants of Gaza claim that they have not witnessed any reduction in the conflict. There has been at least one instance of the whole community being evicted from their houses, with many people being relocated many times as Israeli soldiers continue to advance.

The bodies of fifteen members of the Nofal family were laid out at a hospital morgue in Rafah, which is located on the southern fringe of the enclave. After an Israeli air strike overnight destroyed their home, the victims were there. Relatives wailed as they stared at the bodies.

The majority of the white shrouds were tiny, and they contained children. Um Ahmed, a mother of five now taking refuge in a tent near Rafah, stated that Gazans had anticipated Blinken’s presence would signal they would be allowed to return to their homes.

It is comparable to words written in butter, since it vanished as soon as the sun rose in the sky. She said, “Those were Blinken’s words, and they were fake.”

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Geopolitics & Foreign Policy

The Maldives upgrades ties with China amid pivot from India.

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The Maldives upgraded ties with China amid a pivot from India. Following a campaign in which he painted China’s regional rival India as a danger to sovereignty, newly elected President Mohamed Muizzu of the Maldives boosted ties with China on Wednesday on his first state visit to Beijing.

Speaking at the Great Hall of the People, Chinese President Xi Jinping referred to Muizzu as “an old friend” as the Asian behemoth agreed to a “comprehensive strategic cooperative partnership,” opening the door for more investment in the Indian Ocean archipelago.

Xi told Muizzu, “China and the Maldives’ relations are facing a historic opportunity to carry forward the past and forge ahead into the future,” according to Chinese official media.

After winning on his “India Out” platform, whereby he described New Delhi’s enormous influence as a danger to sovereignty, Muizzu assumed office in November. Despite being deeply indebted to Beijing, his administration has recently requested hundreds of Indian military troops stationed locally to leave while promoting opportunities for Chinese businesses.

Following a military skirmish in the western Himalayas in June 2020 that claimed the lives of 20 Indian and 4 Chinese soldiers, ties between the two countries plummeted.

China is paving the way for more investment in a region where India has already witnessed another neighbor, Sri Lanka, move closer to China by strengthening its relations with the Maldives.

Following the meeting, his presidential office said that “20 key agreements between the two countries” had been signed. “During the talks, President Dr. Muizzu expressed gratitude for China’s significant role in the Maldives’ economic success and infrastructure development,” the statement said.

According to World Bank data, the Maldives owes China $1.37 billion, or around 20% of its public debt, which puts Beijing ahead of Saudi Arabia and India, which owe $124 million and $123 million, respectively, as its largest bilateral creditors.

According to statistics from the American Enterprise Institute think tank, since the Maldives decided to join the Belt and Road Initiative in 2014, Chinese companies have made additional investments in the country totaling $1.37 billion.

According to official media, Xi stated, “China firmly supports the Maldives in safeguarding its national sovereignty, independence, and national dignity.” Plus, according to Xinhua, Beijing would be open to “exchanging experience of state governance” with Male.

Before meeting with Xi, Muizzu was shown a video on X, formerly known as Twitter, via his presidential office account. The video showed him touring the Chinese Communist Party Museum in Beijing.

In an October development assessment on the Maldives, the World Bank cautioned that further cozying up to China may be problematic since there was a “lack of domestic investment opportunities” and a “build-up of sovereign exposure” during the epidemic.

Xi stated that he supported more direct flights between the two nations, which might benefit the Maldives’ travel and tourist industry, which the Asian Development Bank estimates would account for 79% of the country’s economic development in 2022.

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Geopolitics & Foreign Policy

Ecuador’s president says the country is at war as gangs hold prison staff hostage.

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Daniel Noboa, the president of Ecuador, declared on Wednesday that his nation was “at war” with criminal gangs that had over 130 jail guards and other employees as hostages. He momentarily took over a TV station via live broadcast and detonated explosives in a wave of violence that has left significant streets desolate.

On Tuesday, Noboa designated 22 gangs as terrorist groups, designating them as recognized military targets. Upon assuming office in November, the president committed to addressing the escalating security issue stemming from an increase in drug-trafficking organizations smuggling cocaine via Ecuador.

Noboa declared on Wednesday, “We are at war and we cannot cede in the face of these terrorist groups.” Noboa declared a 60-day state of emergency in response to the hostage-takings, which started in the small hours of Monday, and the alleged weekend escape of Los Choneros gang boss Adolfo Macias from jail.

On Tuesday, following a string of explosions around the nation and a spectacular live-streamed takeover of a TV station by gunmen, he tightened the edict.

The government claims that Noboa’s proposal to construct two new, high-security prisons for gang leaders is the reason for the violence, and Noboa informed the radio station that the designs for the two new institutions will be revealed to the public tomorrow.

Noboa declared, “We are doing everything in our power to free all of the hostages,” adding that the military had assumed control of the rescue operation. “We are doing everything possible, and the impossible, to get them safe and sound.”

According to the SNAI prisons agency, 125 captives are guards, while the remaining 14 are administrative employees. It stated that eleven individuals were let go on Tuesday.

Social media users posted videos of prison staff members being shot and hanged, among other acts of horrific cruelty. Reuters could not immediately confirm the validity of the films. According to Noboa, the nation will start deporting foreign inmates this week, particularly those from Colombia, to lower the jail population and costs.

Approximately 1,500 individuals from Colombia are incarcerated in Ecuador, according to Noboa, who also stated that 90% of foreign inmates are from Colombia, Peru, and Venezuela.

Colombian legislation requires that repatriations be evaluated on a case-by-case basis and predicated on inmates’ petitions. Despite this, Colombia’s justice minister stated on local radio on Tuesday that he was eager to negotiate with Ecuador.

Like many other Latin American nations, Colombia has supported the Ecuadorian government. On Wednesday, the country said it would strengthen its military presence and control along their shared border, which spans over 600 kilometers (370 miles).

PERMANENT VIOLENCE

Noboa told the radio station that ensuring the rule of law and enhancing security would be the best ways to protect the economy and foreign investment.

On Tuesday, lawmakers endorsed Noboa’s initiatives and supported the armed forces. After his party formed alliances with a Christian party and the socialist movement of former President Rafael Correa, Noboa now leads a majority coalition in Congress.

Noboa stated, “I have asked for their support, but I don’t need their approval right now for what we are doing,” about the decrees. On Wednesday morning, Noboa also had a meeting in Quito with ambassadors to Ecuador.

The police reported on Wednesday that since Monday, there have been 70 arrests about various incidents, including the seizure of the TV station.

Four police officers are still being detained after criminals allegedly abducted them between Monday and Tuesday. Late on Tuesday, three more cops were released. The police were identifying the three victims found in a burned-out car overnight south of the capital and adding that there was still violence in Guayaquil, the country’s largest city.

On Tuesday, armed individuals killed two police officers in the province of Guayas, where Guayaquil is located. The cops did not offer any more information. On Wednesday morning, many shops were closed, leaving the streets of Quito and Guayaquil quiet.

A major Chinese investor in Ecuador said that the Chinese embassy and consulates would be temporarily shuttered. All around the country, schools were closed, but courses continued digitally. Locals reported feeling as though pandemic lockdowns were again in place.

“The streets are very empty; it’s horrible,” forty-year-old Rodolfo Tuaz, a security guard in Guayaquil, said. “It’s a frigid environment, as if there were a new COVID.”

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