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City staff warn HUD changes could limit which nonprofits can receive CDBG and HOME funds; pantries and providers urge help

City of Lowell — City Council / School Committee (joint meeting record) · January 21, 2026

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Summary

DPD staff warned the council and nonprofit subcommittee that new federal guidance will require grantees to certify compliance on items including DEI language, gender references, climate and immigration verification; local pantries and nonprofits said the changes risk cutting smaller providers out of CDBG grant eligibility.

City planning staff told a nonprofit subcommittee meeting on Jan. 21 that federal changes to HUD entitlement-program guidance will change how Lowell administers CDBG, ESG and HOME funds and will affect who can apply for grants.

DPD presentation: Director Yovanni Baez Rose (DPD) explained entitlement funding buckets (CDBG, ESG, HOME), how the city administers RFPs and that the department plans to offer technical assistance and public sessions to help local nonprofits comply. She warned that new federal language may require organizations to sign grant agreements certifying they do not use certain DEI language, that they do not promote abortion-related access, and that they limit gender-language use. DPD also said direct-benefit programs may require verification of immigration status using the federal SAVE system.

Nonprofit concerns: Rebecca Wisniewski, board chair of the Open Pantry of Greater Lowell, said recent administration of CDBG has effectively excluded small pantries from funding because of consolidated larger grants and that the pantry lost roughly $15,000 in expected funds; she asked the city for help revising practices or seeking state support if federal funding declines. Dan Rivera (Coalition for the Better Acre) and other nonprofit leaders underscored the operational strain of monitoring compliance and the difficulty for organizations serving undocumented people.

Council and staff response: DPD said it will hold public informational sessions and provide technical assistance; staff reiterated that acceptance of federal funds is voluntary but that smaller grants may be harder to administer under the new rules. The council asked staff to continue outreach and consider ways to preserve access for smaller community providers while maintaining federal compliance.

Next steps: DPD will host a public session for nonprofits, provide technical assistance and bring recommendations to the council on how to structure FY26 allocations in a manner that complies with HUD guidance while minimizing harm to small community providers.