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Housing and Urban Development

BUDGET CUT REPRISE
Budget calls for CDBG restructuring, elimination of programs

At HUD, it's a case of dèjá vú all over again. The budget proposal calls for a $600 million cut to Community Development Block Grants and a general restructuring of the program away from formula grants toward more limited assistance for economic distress. If enacted, the CDBG proposal would represent a cut of nearly 1/3 since FY 2003. The budget also again asks Congress to eliminate HOPE VI, Section 108 loan guarantees, the Brownfield Economic Development Initiative, and the Rural Housing and Economic Development program.

Congress is almost certain to again reject these proposals. The House of Representatives just voted to reauthorize the HOPE VI program. The budget maintains roughly current funding levels for project based rental assistance and calls for increases in the HOME program.

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