Issue Position: Housing - Community Development Block Grant

Issue Position

The Community Development Block Grant (CDBG) program has been a highly effective tool for providing communities with the resources needed for redevelopment and revitalization, as well as housing rehabilitation. It has been proven to create jobs, opportunities and homes for low-income families and individuals.

The President's Fiscal Year 2006 budget request contained a proposal to consolidate CDBG (currently administered by the Department of Housing and Urban Development), along with 17 other housing and community development programs into one program to be operated by the Commerce Department. The President's request would have funded this new consolidated program at 35 percent less than the 18 programs received last year. Rep. Eshoo opposed this plan and joined her Colleagues in sending a letter to House Appropriators urging them to resist this plan.

The Bush Administration has also threatened to change the CDBG funding formula to ensure that more affluent communities cannot receive funding through this program. In fact, last year David Sampson, Assistant Secretary of Commerce for Economic Development, specifically named Palo Alto as a community receiving more funds than it "deserves." Unfortunately, these comments demonstrate a lack of understanding for how this program benefits communities with real income disparities. In the 14th Congressional District, the CDBG program provides essential funding for communities to assist the poor, seniors and homeless.

Thankfully, the President's proposals regarding CDBG have not been adopted by Congress. Rep. Eshoo will continue to fight for the continuation of this important program.

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