SENATE RESTORES FUNDING
FOR COMMUNITY BLOCK GRANT PROGRAM
Budget Amendment passed to restore full
funding to vital community grant program
Washington, DC -- Senator Hillary Rodham Clinton today
welcomed the Senate's decision to restore funding to the
Community Development Block Grant (CDBG) Program in the
Fiscal Year 2006 Budget. The amendment, which was approved
by a vote of 66-31, will provide $2.07 billion in funding
to restore the CDBG program and other programs that faced
elimination under the President's Budget. According to the
Department of Housing and Urban Development (HUD), in Fiscal
Year 2005, New York cities received almost $400 million in
much-needed grants through the CDBG program for affordable
housing, social services, neighborhood revitalization and
"The Community Development Block Grants program has long
been a lifeline for local towns and cities, allowing them
to make critical investments that have returns for years
to come. I am glad that the Senate took action to restore
the cuts and will continue to fight against any attempts
to undermine these critical programs," said Senator Clinton.
"Since 1974, this successful program has provided critical
funds to cities so that they can make affordable housing
available, revitalize run down neighborhoods and provide
economic development opportunities to those who need them
most," Senator Clinton said. "I will work to ensure that
this vital funding remains in the Budget as it proceeds
through the appropriations process."
Following the release of the Budget last month,
Senator Clinton wrote to both President Bush and
Chairman and Ranking Member of the Senate Budget
Committee, calling for the rejection of the Bush
Administration's proposal to essentially eliminate
the Community Development Block Grant (CDBG) program.
The Community Development Block Grant Program is widely
acknowledged as one of the nation's most successful
local funding streams.
The Bush budget proposal eliminates the Community Development
Block Grant (CDBG) and replaces it with a program that is
supposed to carry out the activities of 18 existing economic
and community development programs. This new program is funded
at $400 million less than the amount spent on CDBG alone last year.
In sum, the 18 programs cost more than $5.6 billion a year and the
Bush budget slashes this investment by 33 percent to $3.7 billion.