Senator Clinton Urges President Bush Not to Cut Vital Aid Program For Cities in Upcoming Budget

Senator Clinton Urges President Bush Not to Cut Vital Aid Program For Cities in Upcoming Budget

Senator says cuts to the successful Community Development Block Program would hurt cities across New York and the nation
New York State could lose over $150 million in funding

Senator Hillary Rodham Clinton today called on the President not to go through with his reported proposal to cut up to 40% from the Community Development Block Grant (CDBG) program in his upcoming Fiscal Year 2006 Budget when it is released Monday. According to the Department of Housing and Urban Development (HUD), in Fiscal Year 2005, New York cities received almost $400 million in much-needed grants through the program for affordable housing, social services, neighborhood revitalization and job development.

The Senator protested the reported cutbacks in a letter sent to President Bush yesterday. The letter, which was signed by a number of democratic Senators including Senators Schumer, Kerry, Kennedy, Corzine, Lautenberg, and Durbin, was prompted by media reports that suggested that the President's budget would propose cuts of up to 40% in the almost $5 billion program that allocates community development funding to cities across New York and the United States.

"The Community Development Block Grants program is a lifeline for New York's cities, many of whom are already struggling under the strain of increased financial burdens and reduced income," Senator Clinton said. "And now the President wants to leave our cities out in the cold."

"Since 1974, this program has distributed much-needed funds to cities so that they can provide affordable housing, neighborhood revitalization and economic opportunities to those who need it most. We cannot afford to abandon them now," Senator Clinton said.

The CDBG program, begun in 1974, is designed to allow communities to develop affordable housing, neighborhood revitalization activities and economic opportunity, principally aimed at low and moderate income persons. Over the past 10 years, Congress has funded the CDBG program at no less than $4 billion dollars in each fiscal year. CDBG funds are tied to hundreds of major job creation and affordable housing success stories across the country.

The Council of State Community Development Agencies, the National Association for County Community and Economic Development, the National Association of Counties, the National Association of Housing and Redevelopment Officials, the National Association of Local Housing Finance Agencies, the National Community Development Association, the National League of Cities, and the United States Conference of Mayors have all opposed the proposed cuts.

A full breakdown of FY 2005 Community Development Block Grant Funding for cities in New York can be obtained on the Department of Housing and Urban Development's website at http://www.hud.gov/offices/cpd/about/budget/budget05/index.cfm

[A copy of the Senators' letter is attached]

February 3, 2005

The Honorable George W. Bush President of the United States Washington, D.C. 20500

Dear Mr. President:

We write in anticipation of receiving your proposed 2005 Budget because of initial reports concerning your Administration's proposal to eliminate nearly half of the $5 billion previously made available to cities, counties, and states in the Community Development Block Grant (CDBG) program. The CDBG program permits communities to implement affordable housing and neighborhood revitalization activities and these funds are tied to hundreds of major job creation and affordable housing success stories across the country.

The Council of State Community Development Agencies, the National Association for County Community and Economic Development, the National Association of Counties, the National Association of Housing and Redevelopment Officials, the National Association of Local Housing Finance Agencies, the National Community Development Association, the National League of Cities, and the United States Conference of Mayors have all opposed these proposed cuts because they know that without these funds, creating opportunities for investment in our urban areas will only become exceedingly more difficult.

The CDBG program, begun in 1974, is one of the most successful programs run by the Department of Housing and Urban Development. We cannot understand what it is about a program, with a mission designed to provide decent housing, a suitable living environment, and expanding economic opportunities, principally for low and moderate income persons, that would cause your Administration to initiate massive budgetary cuts as reported in recent weeks.

If we are to move forward as a nation, and put more Americans back to work, then the CDBG cuts your Budget is expected to contain are simply unworkable. On December 26, 2004, you hosted a White House Economic Conference in which you said, "One of the tests of leadership at all levels of government is to confront problems before they become a crisis." Mr. President, we believe that the type of budgetary cuts you are proposing for our cities, counties, and states, will exacerbate the job, housing, and economic development crises so many American communities face at this moment.

If reports that the CDBG program is currently slated for massive cuts are accurate, we urge you to reconsider such a harmful proposal. We look forward to working with your Administration to solve the economic problems facing communities across America, but we cannot make much progress if one of the most effective tools at our disposal -- CDBG -- is destroyed.

Sincerely,