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Anacortes council approves 2026 CDBG plan after debate over funding for local nonprofits
Summary
After a lengthy public hearing and council debate over whether limited CDBG "public service" dollars should prioritize a local family center or a regional community-action program, Anacortes approved the 2026 Community Development Block Grant annual action plan by a 4–2 vote with one abstention.
The Anacortes City Council on April 27 approved the city’s 2026 Community Development Block Grant (CDBG) annual action plan after debate over how to allocate a limited pool of federal funds.
Miss Snyder, the city’s CDBG administrator, told the council the city was allocated $17,190 by HUD for 2026 and that staff had posted the draft plan for a 30-day public comment period; she said no emailed comments were received but the city held public testimony. At the public hearing, Dustin Johnson, representing the Anacortes Family Center, argued that the public-service portion of CDBG should continue to support local emergency shelter and employment services targeted to people experiencing homelessness or low incomes. "The public benefit ... is specifically to benefit homelessness and low-income citizens," Johnson said, urging the council to prioritize locally based services.
Sandy Finny, chief strategy officer of Community Action of Scadget County, said Community Action also provides employment and resource services in Anacortes and asked the council to restore program-service allocations to better support that organization’s expanding employment work. Public commenters and council members described both organizations as doing important, sometimes complementary work.
Council debate focused on two points: (1) HUD rules limit public-service spending to 15% of the CDBG allocation, making program funds scarce, and (2) whether the limited dollars should be directed toward a local provider with demonstrated fundraising leverage (Anacortes Family Center) or toward Community Action, which council members said serves a broader regional need and has not previously received this city funding. Councilmember Fantini said he wanted more information before voting; Councilmember Courier and others highlighted the family center’s strong local track record and multiplier effect. Councilmember Young and others argued Community Action also needs seed money to expand services in Anacortes.
After discussion, Councilmember Molton moved to approve the plan as presented. The motion passed on a roll call vote: Hunt, Young, Molton and McDougall voted yes; Courier and Pantini voted no; Colleen McGrath abstained. The council directed staff to finalize the plan for submission to HUD by the May 15 consortium deadline.
The vote authorizes the city to submit the 2026 CDBG annual action plan as presented and to execute contracts consistent with the allocations shown in the adopted plan. Councilmembers stressed the city will continue to monitor outcomes and reporting requirements tied to HUD codes and that staff will track economic-development metrics required under the city’s five-year consolidated plan.
The council signaled it will continue conversations about how to measure and report the economic-development outcomes of funded projects in future grant cycles.
