Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Federal Grant Funding Cdbg Home topic
No spam. Unsubscribe anytime.
Pasco officials warn CDBG and HOME funding is uncertain in FY26; council backs staff drafting letter to federal delegation
Summary
City staff told the council the administration's FY26 budget proposed eliminating Community Development Block Grant (CDBG) and HOME funding, creating uncertainty for local projects and a Section 108 loan repayment; councilmembers expressed support for a staff-drafted letter to federal representatives urging retention of the programs.
Hailey Miller, Community and Economic Development Director, told the council the federal Community Development Block Grant (CDBG) and HOME programs were listed for elimination in the administration's FY26 budget proposal, though staff said the situation remained in flux as Congress develops appropriations. "It is up in the air," Miller said. "It's not a guarantee."
Nut graf: CDBG and HOME fund local housing, infrastructure and redevelopment projects; their removal from federal appropriations could affect ongoing projects and the city's repayment obligations on a Section 108 loan tied to a local project.
Details: Miller said the city secured a Section 108 loan in 2020 for $3,700,000 related to a Peanuts Park Mercantile project and has been applying annual CDBG allocations of $245,000 to loan payments; staff reported the loan balance is approximately $2,800,000. Miller said it was unclear whether the loan would be forgiven or what the federal response would be if CDBG funding were eliminated. Staff asked whether the council would support sending a letter urging Congress to retain CDBG and HOME funding.
Council response and alternatives: Councilmember Brousse said he supported a letter and asked whether state funds could replace lost federal funding; a staff member responding said that was unlikely because the state is facing significant budget pressures. Councilmember Harpster said he "would certainly be in favor of submitting this letter on behalf of the city" and listed recent local projects funded by CDBG such as the ChipMiner rehab program, Peanuts Park North, a facade improvement program and ADA playground improvements.
Process context: Miller clarified that the cited removal appears in the president's budget (administration proposal) and that Congress ultimately controls appropriations; continuing resolutions are common and the appropriation process could preserve the programs. Staff reported they would draft the letter for the council's review and bring it forward.
Discussion versus action: Council expressed support for staff drafting a letter to the city's congressional delegation and senators; no formal vote was taken at the workshop. Staff said they will prepare the letter and return it to council for review or approval as appropriate.
Ending: Staff will draft and circulate the proposed letter of support for CDBG and HOME funding to council and assist in outreach to the city's federal delegation.
