California, New York fight over shrinking low-income housing aid in Democrats’ bill

WASHINGTON — In the scramble to appease centrists by scaling back their massive social safety net spending bill, Democrats are discussing cutting in half new funds to address homelessness, public housing, racial inequities in homeownership and renters’ assistance.

But because of the stark differences in the way low-income housing is addressed state by state, the proposed cuts have set off a West Coast-East Coast tug of war over what is expected to be a much smaller $150 billion pie.

The largest housing pieces in Democrats’ "Build Back Better" package, still subject to negotiation, divide assistance into three main buckets: repairs on public housing facilities, vouchers for low-income renters and construction of new low-income housing.

The public housing aid would primarily benefit