Committee warns of uncertainty for CDBG, HOME and housing vouchers that support West Allis programs

City staff briefed the Administration Committee on the uncertain federal funding outlook for Community Development Block Grant (CDBG) money, HOME funds and Housing Choice Voucher administration fees, and flagged potential budget impacts if funds are reduced or delayed.

Patrick, a city staff member who presented to the committee, said the city typically receives about $1.2 million in CDBG funding and that the timing and level of federal funding this year are unclear. He said the city has advised grant recipients not to spend 2025 allocations until federal funding is confirmed.

Staff highlighted several specific risks: the potential elimination or reduction of HOME program funding that supports affordable housing projects; uncertainty about future administrative fees for the Housing Choice Voucher program; and proposed changes to tax-exempt bond rules that, according to staff analysis cited at the meeting, could increase borrowing costs for the city and local schools by roughly $500,000 in additional interest expense. The meeting also included discussion of a federal executive order reported to affect the CDFI Fund and the New Markets Tax Credit, both programs used to finance economic development; a Treasury Department statement was said to have offered a differing interpretation of the executive order.

Committee members noted that CDBG funds subsidize a wide range of local services—from homeless outreach and graffiti removal to gang-prevention and some staff positions—and urged partners and constituents to contact legislators and program offices if there are concerns. Patrick said the city is monitoring developments closely, is engaged with professional associations and will share detailed line-item allocations of CDBG money with committee members on request.

No formal action was taken; the item was a committee discussion and was not voted on at the meeting.