Budget Cuts and the Future of Community Development

Trump’s Budget Cuts

Donald Trump recently released his budget blueprint, titled “America First: A Budget Blueprint to Make America Great Again”. While the budget cuts may benefit the president, he proposes budget cuts that threaten the security of millions of Americans who rely on federal funds and community development to find affordable housing all over the country. Trump’s “targeted reductions” help to fund his exponential increase in military spending by taking away funding from crucial grants such as the Community Development Block Grant, which allows “cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons”. He also proposes the elimination of funding to the HOME Investment Partnerships Program, Choice Neighborhoods, and the Self-help Homeownership Opportunity Program, which he considers to be “low priority”.

What impact do these programs have on local communities?

These programs allow local leaders across the nation to have a transformative impact on their communities by providing federal assistance that offsets the cost of developing affordable housing for low-income families. The proposed budget cuts are not threatening those who can afford to make financial sacrifices; they are threatening vulnerable low-income families who rely on community grants like the CDBG to make a home for their loved ones.

Fortunately, this budget cut is not final. While these are proposed cuts, the plan still has to be approved by Congress. During this process, however, low-income families will be stuck in a purgatory of uncertainty while they wait to find out their future.

To view an updated report on CDBG allowances per state, click here.

At Neighborly Software, we are dedicated to helping local community leaders ease the burden of administrative processes by offering a cloud-based software that makes it easier to fill out, monitor, and track progress on grant applications and other forms related to Housing, Economic and Community Development programs. This minimizes the time spent on paperwork so you can spend more time investing in your local community. Request a demo today.