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Committee raises concern after staff flags zeroed federal CDBG/HOME funding in presidential budget outline
Summary
Staff told the committee that the president's discretionary budget framework shows zero funding for federal CDBG and HOME programs for the 2026 program year, prompting discussion of local impacts and uncertainty about future entitlements.
City staff updated the committee on federal funding signals and urged caution as federal budget proposals could affect local Community Development Block Grant (CDBG) and HOME allocations.
Staff noted that the president’s discretionary budget discussion document for the coming program year proposed zero funding for CDBG and HOME; committee members responded that Congress and regional delegations will determine final appropriations. The draft 2025 plan remains on the city website for public comment and a public hearing was scheduled at the next Common Council meeting.
Committee members raised concerns about other federal housing programs as well. Participants said they had heard proposals to reduce funding for Housing Choice Vouchers and to limit the duration of some voucher programs; staff and members warned such changes would have immediate and acute impacts on housing stability and shelter demand. One member said: “That would be…disastrous consequences” if emergency housing vouchers or time limits on HCVs were imposed, echoing staff and participant concerns.
Staff also advised that HUD Region 2’s environmental review technical staff have taken deferred retirement, reducing technical assistance capacity in the region. The change means local teams may have less direct access to experienced HUD regional environmental reviewers for complex environmental or historic preservation questions.
The staff report reminded the committee that the draft annual plan and the CDBG/HOME application remain subject to federal award notifications; program year timing was described as beginning in August for the current application cycle. Staff said they will continue to monitor congressional action and regional HUD guidance and report back to the committee.
