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County outlines draft CDBG infrastructure projects as federal funding faces possible cuts
Summary
SHRA presented a draft list of infrastructure and housing projects for the 2026 federal action plan, estimating roughly $6 million in CDBG funds and warning that proposed federal budget changes could eliminate the program.
Sacramento Housing and Redevelopment Agency (SHRA) staff on June 3 presented a draft list of 2026 Community Development Block Grant (CDBG) infrastructure projects and warned the board the federal program faces potential elimination in the president's budget.
Stephanie Green, SHRA federal programs manager, said the draft assumes roughly $6 million in CDBG entitlement funding for 2026 but cautioned that the president's budget proposes eliminating CDBG. Based on prior-year allocations, staff proposed reserving close to the 15% maximum for public services and 20% for planning and administration, leaving about $2.18 million for infrastructure and public-facility improvements, $1.3 million for housing programs and $400,000 for agreement cities.
The draft infrastructure projects recommended for 2026 include the Fruit Ridge sidewalk project (District 1); Florin Road bicycle and pedestrian improvements between Franklin and Power Inn (District 2); Wide A Way sidewalk infill (District 3); and the Arden Way complete-streets project (District 3), plus funding for required environmental review.
SHRA also presented proposals not recommended for 2026 but considered for future years, including multiple South Gate Park District projects and county projects such as Gibson Ranch ADA improvements and Rosemont ADA curb work. Staff noted that previously approved projects have fixed spending timelines under HUD rules and that unspent funds can be reprogrammed so long as spending deadlines are met.
Supervisors asked how projects are prioritized; Green said staff weigh eligibility, community impact, a project's ability to spend down funds within 12'18 months, and whether additional funding would close out prior awards. Supervisor Kennedy asked about the large number of proposed drones in another agenda item but noted concerns about relying on federal funds that may not be forthcoming.
SHRA emphasized that CDBG public-service dollars support programs such as Meals on Wheels and a shelter in the Mather area; a loss of CDBG would affect those services, staff said.
No board action was required; staff will refine the draft and return with a final 2026 action plan for approval in October.
