By Eugene T. Lowe
July 16, 2012

The House of Representatives approved on June 29 the fiscal year 2013 Transportation, Housing and Urban Development funding bill, H.R. 5972, with an increase for both the Community Development Block Grant (CDBG) program and the HOME Investment Partnerships program. CDBG formula grants were increased from $2.948 billion to $3.344 billion and HOME was increased from $1 billion to $1.2 billion. The Senate bill, which has not yet gone to the floor, was approved by the Appropriations Committee on April 19 funded CDBG formula grants at $3.1 billion, and HOME at $1 billion.

Subcommittee Chairman Tom Latham (IA) and his subcommittee on Transportation, Housing and Urban Development recommended the funding increases to CDBG and HOME. But even with those increases, the Administration strongly opposed passage of the bill, and President Obama's Senior Advisers said that they would recommend the bill be vetoed. At issue for the Administration is the bill's "lack of funding for the TIGER Grants" and the "bill's failure to provide additional funding for High Speed Rail grants," HUD's Choice Neighborhoods initiative and Sustainable Communities were also not funded. In its criticism of the bill, however, the Administration said that it "…appreciates the Committee's support for the CDBG program, which provides critical funding to State and local governments to address infrastructure, affordable housing, and economic development needs in their communities."

During the House floor debate on the bill, two amendments were offered to cut CDBG funding. Representative Jason Chaffetz (UT) offered an amendment to cut funding for the Community Development Fund to the FY12 level. And Representative Tom McClintock (CA) offered an amendment to zero out the Community Development Fund, the CDBG formula grants and the Community Development Loan Guarantees (Section 108) account. Both of these amendments failed.

The funding increase to the HOME program also came under attack during the House debate. Representative Jeff Flake (AZ) offered an amendment to cut HOME funding by $200 million. Representative Flake also offered the amendment during the Appropriations Committee mark up of the bill. The amendment failed both times.

CDBG and HOME are in relatively good positions after action in the House and Senate. Both the House and Senate approved CDBG funding at a higher level than the last fiscal year. While the Senate level funded HOME, the House increased funding for the program. CDBG Coalition (national organizations representing locally elected and appointed officials and national public interests groups) visits with senate staff indicate that no further action will take place on the HUD bill until after the election, which will mean that Congress will have to pass a continuing resolution to fund programs after September 30, the end of fiscal year 2012. This, of course, means that CDBG would be funded at its current level of $2.948 billion and HOME at $1 billion until after November when Congress will return to Washington.