Welfare Reform:

HUD's Preliminary Estimate of the Financial Impact of Welfare Reform on HUD'S Programs

RCED-98-57R: Published: Jan 30, 1998. Publicly Released: Jan 30, 1998.


Judy A. England Joseph
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Office of Public Affairs
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Pursuant to a legislative requirement and a congressional request, GAO provided information on the Department of Housing and Urban Development's (HUD) preliminary estimate of the financial impact of welfare reform on HUD's programs.

GAO noted that: (1) HUD used estimates derived from a model that measures the impact of welfare reform developed by the Urban Institute, together with budget estimates from the Congressional Budget Office, to develop a preliminary estimate of expected increases in HUD's subsidies for public and assisted housing due to anticipated losses in tenants' incomes; and (2) HUD is no longer standing behind this estimate because of the difficulties in predicting how states will implement their welfare reform plans, how welfare recipients will respond to welfare reform, and other factors.

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