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West Allis committee hears warning on federal grant uncertainty; CDBG, HOME and voucher funding could shift
Summary
City staff told the administration committee that Community Development Block Grant and HOME program funding remains uncertain at the federal level, which could affect partner nonprofits and some city-funded positions; officials said the city is monitoring possible elimination of the CDFI program and proposed changes to tax-exempt bonds.
City of West Allis staff briefed the administration committee on uncertain federal funding that could affect Community Development Block Grant (CDBG) allocations, HOME program money and housing voucher administration.
Patrick, a city staff presenter, told the committee that the city's expected CDBG allocation is about $1,200,000 but warned the figure is not certain because of ongoing federal budget actions and executive orders. Staff said they had told most grantees not to spend 2025 funds until allocation certainty arrives and that the timing of federal disbursements could put pressure on the municipal budget.
Patrick said the HOME program, which the city uses to support affordable housing projects, could face elimination in pending federal changes. He also said the city expects voucher program payments to be made but that administrative fee rates could be reduced. Committee members raised alarm about the possible fiscal effects on local nonprofits and city-supported staff; one alderman noted that CDBG funds are used for a wide range of programs, including homeless outreach, graffiti removal, domestic-violence services and gang prevention.
Staff also highlighted two other federal issues under review: a proposed change that could reduce or eliminate tax-exempt bonding (which the presenter estimated could cost the city about $500,000 in higher borrowing costs) and an executive-order-level discussion around the Community Development Financial Institutions (CDFI) Fund and New Markets Tax Credit programs, both of which support economic development financing.
Committee members asked staff to keep the committee apprised and to circulate detailed budget-allocation tables showing how CDBG dollars were allocated in the last budget year. Patrick said staff are monitoring professional organizations and federal updates and urged community programs that rely on grant funding to communicate with legislators if they are concerned.
No formal action was taken; the item was a high-level discussion and staff will continue to monitor federal developments and report back to the committee.
