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 job development.

"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.