By Eugene T. Lowe
May 9, 2005

The House of Representatives released the fiscal year 2006 spending allocations for its 12 appropriations subcommittees May 5. The allocations, which are known as 302 (b)s, would provide ten percent more to the Transportation, Treasury, Housing and Urban Development (HUD) appropriations subcommittee than was recommended by the administration's fiscal year 2006 budget. The Science, State, Justice, Commerce appropriations subcommittee is allocated 5.2 percent less than proposed by the administration. This means that the allocations do not support a transfer of CDBG from HUD to the Department of Commerce. Funds are available to fund CDBG in the Transportation, Treasury, HUD subcommittee, thereby keeping the program at HUD. Funds are not available for the Strengthening America's Communities Initiative ( the proposed consolidation of CDBG and 17 other economic development programs) in the Science, State, Justice, Commerce subcommittee.

The Senate and House passed a budget conference report April 28, which states, "The levels are $1.5 billion higher than the President's request to maintain economic and community development programs such as CDBG at FY 2005 levels." The budget agreement makes it clear that the Congress wants the Community Development Block Grant program fully funded in FY 2006.

Previous action in separate budget resolutions adopted before the House and Senate Conference agreement establishes very clear, bipartisan support to keeping CDBG fully funded and at the Department of Housing and Urban Development (HUD). An amendment by Senator Norm Coleman (MN) in the Senate Resolution was specific in its opposition to the administration's proposal to consolidate 18 community and economic development programs, including CDBG, and move them with reduced funding to the Commerce Department. The House also increased funding and mentioned CDBG specifically in previous action.

In addition to the $1.5 billion for CDBG, the conference report, at the urging of Coleman and others got $600 million for the Community Services Block Grant (CSBG). CDBG and CSBG are the two largest programs in the administration's proposal.

Conference President Akron Mayor Don Plusquellic said of the budget conference report: "I want to thank the House and Senate for recognizing the importance of CDBG to communities of all sizes and in all parts of the nation. I want to specifically thank the champions who led this effort in Congress such as Senator Norm Coleman (MN), Representative Mike Turner (OH), Senator Paul Sarbanes (MD), Senator Patrick Leahy (VT), Senator Mike DeWine (OH), Senator Kit Bond (MO), Representative Chris Shays (CT), Representative Barney Frank (MA), and many others."

As the budget was being approved, both the House and Senate were circulating letters to the Appropriations Committees to fully fund CDBG at $4.7 billion in FY06. Fifty-five Senators signed the Senate letter which was sent on May 12. It is hoped that the Senate letter will help to get an adequate 302 (b) allocation for the appropriations subcommittee which will be sufficient to restore funding to CDBG while not cutting other important housing programs. The 302 (b) allocation is the amount of funding that each congressional appropriations subcommittee ( 10 subcommittees in the house and 12 in the senate) has to fund all programs for which it is responsible. The letter to the House Appropriations Committee will be sent on May 12. Mayors are encouraged to request their Congressional representatives to sign the letter.