Community Development Block Grants: Funding Issues in the 112th Congress and Recent Funding History [July 13, 2011] [open pdf - 280KB]
"In the coming weeks and months Congress will consider legislation appropriating funds for FY2012. The budget debate will establish national priorities and takes place within the context of growing concerns about the need to address federal budget deficits, the national debt, and a sluggish economic recovery following the longest and deepest recession since the Great Depression. The Obama Administration and the 112th Congress may consider and debate a number of approaches to spur economic activity and job growth, including federal public works and community and economic development programs. In addition, the Administration and Congress must arrive at a consensus on how to address long term deficit reduction, including spending cuts. The Department of Housing and Urban Development's (HUD) Community Development Fund (CDF), which includes the Community Development Block Grants (CDBG), are among the accounts that Congress may consider candidates for funding reduction or elimination. […] The President's proposed budget recommends $3.804 billion for the CDF account. This is 8.6% higher than the account's FY2011 funding level. The Administration has proposed a restructuring of the CDF account by minimizing, through transfer or termination, activities not directly related to the CDBG program by authorizing statute. The Administration's FY2012 budget proposes to: (1) increase funding for CDBG formula grants by 10.5% from $3.303 billion appropriated in FY2010 to $3.691 billion; (2) eliminate funding for the Neighborhood Initiative and Economic Development Initiative programs; (3) eliminate funding for Section 107 activities; (4) transfer its Sustainable Communities Initiative to a new stand alone account; and (5) convert Section 108 loan guarantees to a fee-based program. This report will be updated as events warrant."
CRS Report for Congress, R41754