By Eugene T. Lowe
May 23, 2005

Over the past several weeks, a major effort has been mounted by the Community Development Block Grant (CDBG) Coalition consisting of national organizations representing appointed and elected officials and other national non-profits to get House of Representative members to sign a letter to the Appropriations Committee calling for "level funding — $4.732 billion — for the CDBG program. The letter also calls for adequate funding for other Department of Housing and Urban Development (HUD) programs in fiscal year 2006. The deadline for house members to sign the letter (first circulated on April 27) was extended from May 12 to May 19. The final number of house members signing the letter was 179. The House Transportation, Treasury, HUD, Judiciary and D.C. Appropriations Subcommittee could meet in mid-June to approve funding levels for CDBG and other housing programs.

When the HUD appropriations subcommittee meets, it will have ten percent more in its spending allocation than was recommended by the administration's fiscal year 2006 budget. With this allocation, the subcommittee will have enough money to level fund CDBG. But there will be pressure to spend the increased allocation on other programs as well. With this in mind, the CDBG Coalition is continuing an all out campaign to make sure that CDBG is funded at least at last year's level of $4.732 billion.

The Senate has not yet released its 302 (b)s or spending allocations. This week (May 16), the CDBG Coalition sent a letter to the Senate Appropriations Committee requesting a 302(b) allocation "that will allow for full funding of HUD's housing and community development programs, particularly the Community Development Block Grant (CDBG) program at the FY2005 funding levels", which would be level funding for CDBG.

At a news conference in late April, Chicago Mayor Richard M. Daley took issue with the administration's proposal to cut CDBG and transfer the program to the Commerce Department. With regard to his city, the mayor said that the proposal "would have a devastating impact on some of our city's neediest and most vulnerable residents and communities." Mayor Daley added, "I know a little bit about the Commerce Department. And I know it is not set up to improve neighborhood quality of life."