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Redevelopment commission told federal CDBG, HOME funding may be cut; consolidated plan moves to public notice
Summary
City staff told the Bloomington Redevelopment Commission that the federal administration's budget request would eliminate Community Development Block Grant and HOME funding for fiscal 2026; the city's five‑year consolidated plan is in final draft and will be posted for public comment.
Bloomington Redevelopment Commission members were told May 5 that the federal administration has proposed eliminating Community Development Block Grant (CDBG) and HOME Investment Partnerships funding for fiscal 2026, a change that could affect roughly $1.4 million in annual federal aid the city typically receives.
CITY CONTEXT: The city’s housing and neighborhood development program staff said the consolidated plan — the five‑year spending plan that directs CDBG and HOME allocations — is in final draft and will be released for public notice shortly. Staff also reported ongoing neighborhood cleanups and multiple active HOME and CDBG projects in construction or rehabilitation.
During the commission’s director’s report, staff described the program year schedule and project pipeline. Staff said CDBG typically totals about $800,000 per year and HOME about $600,000, for a combined approximate annual allocation of $1.4 million. Staff noted that projects and service contracts funded this year include about 14 physical improvement projects and several HOME projects supporting owner‑occupied rehab, multifamily development and an early learning center. Neighborhood cleanups and homeowner rehab work were cited as current uses of those funds.
Staff emphasized the proposal in the federal budget is only a request and that similar proposals have been made in prior years without being enacted. No local action was taken at the May 5 meeting; staff said they will notify partners and report back when the city’s allocation is officially announced.
The commission asked staff how carryover or multi‑year projects would be handled if federal funds are reduced; staff said some projects roll across fiscal years and that budgetary decisions would need to be made after the city’s allocation is confirmed. Staff also said the city is continuing work on a Hopewell TIF mechanism and will report more information on that soon.
Ending: The commission took no formal action on the federal proposal at the meeting; staff will post the consolidated plan for public comment and continue monitoring federal appropriations and reporting updates to the commission.
