Council holds public hearing on 2025 CDBG plan as staff warns federal funding may be cut

The Walla Walla City Council held a public hearing March 26 on the draft 2025 Community Development Block Grant annual action plan and heard several community partners outline proposed uses for expected 2025 CDBG funds.

CDBG program coordinator Lydia Caudle told council she had presented “the entire CDBG budget” to the city for the first time and described a set of proposed projects that, together, target affordable and accessible housing, childcare, neighborhood cleanups, home repairs and case management for people experiencing homelessness. Caudle also said the federal 2025 allocation will remain at the 2024 level after a continuing resolution but warned the 2026 presidential budget request would eliminate CDBG funding.

Why it matters: CDBG provides flexible federal money for local housing, infrastructure and public-service projects that primarily serve low- and moderate-income residents. Council members said the program’s local leverage—Caudle described several projects that combine CDBG with other public and private funds—makes the city’s CDBG allocation influential beyond the dollar amount.

Caudle described a set of project proposals in the draft plan: two licensed child-care play areas through a partnership with the Walla Walla School District and Whitman College’s human-centered design program; a pilot homeownership/down-payment assistance component with Habitat for Humanity to support two duplexes and a triplex; continued homeowner and rental unit repairs; and funding for case management services delivered by BMAC to roughly 30 people experiencing homelessness. She said neighborhood cleanups and investments to address failing household sewer lines were also included in the draft. Caudle provided dollar-band estimates for capped categories (administration and planning at about 20 percent; public services at about 15 percent) and singled out a roughly $390,000 public-service bucket for neighborhood cleanup and other activities in low-income areas.

In public testimony, Felipe Gamboa of Upwards framed childcare as an economic and workforce issue: “so many families do not have the option to enter into the workforce because they cannot find reliable childcare,” he said, and described Upwards’ work with in‑home child-care providers. Caudle and several council members repeatedly tied project choices to community input and the consolidated plan, and council members praised the outreach the CDBG office conducted.

Council direction and next steps: Councilors agreed to draft a letter to the city’s congressional delegation urging them to protect CDBG funding. Caudle said she is preparing one-page materials and suggested hosting legislators to tour CDBG-funded projects. No formal funding decisions were made at the meeting; Caudle said she will return with a final annual action plan once the city’s final federal allocation is received.

Council reaction: Multiple council members thanked Caudle and the CDBG board for broader outreach and for proposals aimed at childcare and housing. Councilors discussed the program’s leveraging ratios and the city’s role in advocacy if federal funding is cut. Several council members committed to sign a letter drafted by staff asking state and federal representatives to maintain CDBG funding.

Ending: The council closed the hearing after brief public comment and directed staff to prepare outreach to the city’s legislative delegation and to return with a final action plan after the city’s allocation is confirmed.