FORGOT YOUR DETAILS?

President’s FY 2018 Skinny Budget Cuts Community Development by 37 Percent

by / Thursday, 16 March 2017 / Published in Appropriations, CDFIs, Congress, Latest posts, Treasury

Our preliminary analysis of the president’s FY 2018 Skinny Budget suggests a cut of $4.31 billion or nearly 37 percent to community and regional development outlays (subfunctions 451 and 452 in the federal budget). Most noteworthy, the proposal would eliminate the Economic Development Administration, cut $210 million from the CDFI Fund by eliminating all grant programs, eliminate the USDA’s Water and Wastewater Disposal program, and end the Community Development Block Grant Program.

To put all of this in context: over the past 35 years, community development spending has been cut by more than seventy-five percent as a share of GDP. While some federal support for community development has shifted to the tax code, tax incentives for community revitalization may also be on the chopping block when the president releases his full FY 2018 budget later this spring.

Below are the proposed cuts:

Proposed Change  Amount (millions $)
Eliminates CDBG -$3,000
Eliminates CDFI grants -$210
Eliminates USDA’s Water/Wastewater disposal program -$498
Increases funding for HUD’s Lead Hazard Reduction program $20
Eliminates USDA’s Business and Cooperative Service -$95
Eliminates Economic Development Administration -$221
Eliminates Denali Commission -$20
Eliminates Applachian Regional Commission -$114
Eliminates Delta Regional Commission -$23
Eliminates Neighborhood Reinvestment Corporation -$140
Eliminates Northern Border Regional Commission -$5
Total reduction -$4,306
Totals for community and regional development, subfunctions 451 and 452
FY 2017 (estimated) $11,758
FY 2018 (proposed) $7,452

Leave a Reply

TOP