Grant Programs Cut in Obama Budget

Among the many spending cutbacks in the President’s proposed budget are numerous grant programs distributed to state and local governments.  From a roundup in Governing magazine, numerous areas have been affected by the broad spending plan recently submitted.  Among them:

Program: Community Development Block Grants (CDBG)
Agency: Health and Human Services
What it does: The program is especially beloved by cities since it is one of the few big sources of federal funds that go directly to them. Governments have wide latitude in how they use CDBG funds, but they’re designed to support programs that assistant low- and moderate-income residents. The administration has said the funds are not well targeted and the program lacks focus. The numbers below are combined for both entitlement and non-entitlement recipients.
FY 2012: $2.949 billion
FY 2013: $2.801 billion
FY 2014 proposed: $2.784 billion

Program: HOME Investment Partnerships Program
Agency: Housing and Urban Development (HUD)
What it does: According to HUD, its the largest federal block grant to states and localities exclusively designed to create affordable housing for low-income households.Grantees have a wide range of uses for the funds, including purchasing, rehabilitating and building housing for rental or ownership. According to the budget, the cut is mitigated by a $1 billion investment in the Housing Trust Fund.
FY 2012: $1 billion
FY 2013: $950 million
FY 2014 proposed: $945 million

Read the full article from Governing.

For previous coverage on Conduit Street, see this analysis from the National Association of Counties.

Michael Sanderson

Executive Director Maryland Association of Counties
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