By Eugene T. Lowe
October 17, 2005

When Congress returns this week, the Senate is expected to take up its version of the FY 2006 Transportation, Treasury, Judiciary, and Housing and Urban Development funding bill. Senators Patrick Leahy (VT), Paul Sarbanes (MD), Jack Reed (RI), Norm Coleman (MN) and Lindsey Graham (SC) will offer an amendment to provide an additional $200 million in each of the following programs: Community Development Block Grant formula funding, Section 8 Vouchers, and Public Housing Operating and Capital funds.

The amendment will be offset by increasing the rescission of Section 8 funds of $1.5 billion. These funds had been appropriated in prior years but were not spent. In a letter supporting the amendment, the CDBG Coalition, which includes the Conference of Mayors, said, “[We] would of course not support a rescission that would reduce funds necessary for ongoing housing and community development program needs. In supporting the amendment, we note that HUD has not identified adverse consequences of the rescission upon existing programs.”

Last year’s funding for CDBG formula grants was $4.1 billion. With the $200 million increase, funding in FY06 would be $3.967 billion, which would still be a cut of approximately $100 million in the program. The House, which has already passed its version of the appropriations bill, funded CDBG formula grants at $3.887 billion. Representative Joe Knollenberg, Chair of the House Transportation, Treasury and HUD appropriations subcommittee, said during floor consideration of his bill, that the House would accept the higher funding level for CDBG formula grants in the House and Senate conference.

In an alert to all mayors, Conference of Mayors Executive Director Tom Cochran asked that all Senators be contacted and urged to become cosponsors of the amendment.