By Eugene T. Lowe
April 11, 2005

With favorable outcomes for the Community Development Block Grant (CDBG) program and other economic development programs in both the House and Senate 2006 Budget Resolutions, action moves to the final budget resolution and to program appropriations. In the senate budget resolution, an amendment offered by Senator Norm Coleman (MN) led to the rejection of the Administration's proposal to consolidate and transfer CDBG and 17 other programs to the Department of Commerce. The Senate Budget Resolution also called for full funding of the community and economic development programs. In the House, Budget Committee Chairman Jim Nussle (IA) requested in report language an increase of $1.1 billion for CDBG over that proposed by the Administration.

When Congress returned this week (April 4) following the Easter break, Senate and House conferees have started to work out the differences between the two budget resolutions. The Conference of Mayors' is advocating the rejection of the Administration's Strengthening America's Communities Initiative and full funding of the CDBG program in the final budget resolution. CQ Today, the legislative news'daily from Congressional Quarterly, reported on April 6 that Coleman will have great leverage in the final outcome largely because of his CDBG amendment to the Senate's budget resolution, which won by a decisive 68 - 31.

Regardless of the outcome of the final budget resolution, a great deal of effort must now be turned toward the appropriations subcommittees and committees. In late May or early June, the House Subcommittee on Transportation, Treasury, HUD, the Judiciary and the District of Columbia, chaired by Representative Joe Knollenberg (MI) will approve a funding level for CDBG and other housing programs. Later, the Senate Subcommittee on Transportation, Treasury, HUD, the Judiciary and the District of Columbia, chaired by Senator Christopher "Kit" Bond (MO) will follow with its funding recommendations for housing and community development programs. The action of these two subcommittees, followed by consideration of the funding levels in the full appropriations committees in both the House and the Senate, will give a more definitive, though not final, direction of what is going to happen to CDBG this year.

Meanwhile, the Administration says that it will send Congress the legislation on the Strengthening America's Communities Initiative sometime in late spring or early summer. Regardless of what is in the legislative package, the Conference of Mayors' policy will remain the same: keep CDBG at HUD and fully fund the program.

Representative Carolyn C. Kilpatrick (MI) has introduced H. Con Res. 108, a bill that expresses the sense of Congress in opposition to the proposal to shift CDBG to Commerce. The Congresswoman says that such a move would "ultimately destroy an invaluable program." As of April 6, forty-seven representatives have joined the congresswoman as co'sponsors of the bill.