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Federal budget proposals would cut CDBG and HOME funding, Clearwater's Washington adviser says
Summary
A consultant briefing to the Clearwater City Council said the presidential budget request recommends eliminating formula funding for the Community Development Block Grant and the HOME Investment Partnerships Program, and highlighted potential impacts to the city's allocations and other federal programs of interest.
Harry Glenn of Van Sciouk Associates briefed the Clearwater City Council June 5 on federal budget and legislative developments that could affect the city, saying the president's fiscal 2026 budget request proposes deep cuts to many nondefense domestic programs.
Glenn told the council the administration's request recommends $0 for the Community Development Block Grant (CDBG) program in fiscal 2026 and proposed eliminating funding for the Home Investment Partnerships Program (HOME). He said, "I looked up I think your allocation for the current fiscal year is about $925,000" for CDBG and that Clearwater was eligible for about $383,000 in HOME funds in fiscal 2025. Glenn emphasized that the president's budget is a recommendation and that Congress will make final funding decisions.
Glenn also reviewed larger federal processes: the continuing resolution that left prior earmarks unexecuted and the start of the congressional appropriations cycle; a separate budget reconciliation process that could affect tax policy and programs such as the Low-Income Housing Tax Credit and Opportunity Zones; and federal disaster funding and FEMA proposals. He said FEMA announced it will not change operations in the current hurricane season and that the administration proposed a $4 billion increase in the federal disaster fund.
Glenn urged the council to monitor several items, including a renewed push to expand Opportunity Zones and prioritization of projects in or near opportunity zones for federal grant applications. He said, "it's something as you're looking at these opportunity zones and and projects you may consider for applying for federal grants, it's important that this would be 1 of the criteria they're looking at."
The briefing concluded with council members noting the implications for the city's housing and infrastructure planning and requesting that staff continue to track developments and notify the clerk and council as matters evolve.
