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Kankakee committee warns proposed federal cuts to CDBG could disrupt local housing repairs and services
Summary
City Community Development Committee reported that ongoing ECDA construction projects face contractor shortages and that a White House budget proposal could eliminate Community Development Block Grant (CDBG) funding, threatening staff positions and programs that fund housing repairs and social services.
The Community Development Committee for the City of Kankakee reported May 5 that uncertainty over federal Community Development Block Grant (CDBG) funding could jeopardize ongoing housing repairs, public facilities projects and staff positions, committee members told the City Council on May 19.
Committee chair Alderman Barron said ECDA reported active construction on dozens of city properties across wards and warned that contractor shortages and supply constraints are limiting progress. "As of the time the report was made, 11 were ongoing in the First Ward, 4 in the Second Ward, 3 in the Third Ward, 3 in the Fourth Ward, 7 in the Fifth Ward, 8 in the Sixth Ward, and 8 in the Seventh Ward," Barron said during the council meeting.
Why it matters: CDBG money funds emergency housing repairs, single-family rehabs, public facilities projects such as fire-station roofs and demolition, and parts of some staff salaries. Committee members said a White House budget proposal then under consideration called for eliminating the CDBG program, which would sharply reduce available funds for local programs and could impair staff paid in whole or part by CDBG.
Ms. Brewer Watson, who gave the departmental report to the committee, summarized the risk: "Based upon the initial proposal that was put out by the White House, the CDBG program would be cut entirely," the committee reported to the council. Alderman Barron said that staff told the committee that several ECDA positions are funded in whole or part by CDBG and that those salaries "would be dramatically impaired" if funding were cut.
Committee members also described operational impacts already underway: the council heard that ECDA had rejected an initial bid to use CDBG funds to repair fire stations 4 and 6 and is preparing to rebid those projects. The committee also noted that several public-service recipients still must submit receipts so they can be reimbursed from 2024–25 CDBG allocations.
On homelessness and coordination, committee members said participation by other municipal jurisdictions in the countywide homelessness task force was limited. Alderman Barron reported that "other than Mantino Police Chief Alan Swinford, who is a member of both, no under no other municipality in the city in the county is participating in any of those efforts." Arlena Caliphate, identified in the meeting as the CDBG program manager, reported the veterans housing project on Washington Avenue was accepting applications but was not yet full.
The committee also discussed the status of American Rescue Plan Act (ARPA) funds and said the process of closing out ARPA awards is ongoing. Committee members emphasized that the final federal budget will determine next year’s CDBG allocation and that the community advisory board will make recommendations once the amount is known.
No formal council action was taken on CDBG funding during the May 19 meeting; the council received the committee report and will await federal budget developments.
Committee members said they will continue rebidding local capital projects and monitoring reimbursements and that ECDA is coordinating with community partners on housing and public-service programs.
