The FY 2006 federal budget, proposed by the Bush Administration, includes major budget cuts and possible restructuring of federal community development programs. The plan proposes to merge 18 existing programs, based mostly in the Department of Housing and Urban Development, into a new Strengthening America�s Communities (SAC) grant program to be administered by the Department of Commerce. Under this plan, funding for community development would be scaled back from $5.3 billion to $3.7 billion. The popular Community Development Block Grant (CDBG) program, currently funded at $4.7 billion, would be eliminated and replaced by a grant program administered by the Department of Commerce. The new program would likely place greater restrictions on which communities are eligible to receive funding and on how the funds may be used.

Importance of CDBG
Established 30 years ago, the CDBG program funds housing rehabilitation projects, supportive services, public improvements and economic development projects in communities across the nation. It serves more than 1,100 entitlement communities, urban counties and states, and more than 3,000 rural communities. Communities rely on these grants to leverage additional funding and to implement key projects.

Concerns and action
The proposed federal budget is currently being reviewed by Congress and is not expected to be resolved until early spring. Concerns have been expressed on all sides about significant funding reductions associated with the SAC program, lack of program details, and the possible loss of local flexibility offered by the CDBG program. The American Planning Association recently launched a CDBG campaign action center to follow new developments related to this program: www.planning.org/legislation/CDBG/.