by Eugene T. Lowe
April 10, 2006

Although the House recessed before completing its FY2007 Budget Resolution, when the resolution is eventually passed, the Community Development Block Grant (CDBG) program will be increased over the administration’s budget request. The resolution proposes an adjustment to the President’s recommended level with an increase of $1.3 billion “which could accommodate additional funding for Community Development Block Grants.” This increased for CDBG would bring the program to a funding level of $4.3 billion.

The Senate, which has passed its budget resolution, also increased CDBG to $4.3 billion following the adoption of an amendment offered by Senators Rick Santorum (PA) and Norm Coleman (MN) to provide $1.3 billion additional funding over the administration’s budget request. The House’s funding for CDBG was included in the budget proposal by House Budget Committee Chairman Jim Nussle (IA).

With both houses agreeing that CDBG should be increased to $4.3 billion, action will soon move to appropriations. While the budget resolutions are important, the House budget resolution makes it clear that the Committee on Appropriations and its subcommittees “will determine…how much is appropriated for individual programs.” It is important to note that last year both house and senate budget resolutions recommended a funding level for CDBG higher than the level eventually agreed on by house and senate appropriations committees. In fact, CDBG was cut by 10 percent last year.

This, of course, means that all efforts to sustain funding for CDBG will have to focus on appropriations. Mayors will be called on over the next couple of months to urge their congressional delegations to provide funding for CDBG formula grants at a funding level of at least $4.3 billion. During National Community Development Week, April 17 – 23, will be an excellent time for mayors to talk to representatives and senators about the value and accomplishments of the CDBG program. Mayors should especially tell their congressional delegations about the impact of the cuts in the CDBG program on local projects and activities. Congressional members will be home during April 10 – 23 for the Easter/Passover recess.