Cal Cities backs effort to protect federal CDBG funding
By Caroline Grinder, legislative advocate (community services)
Last week, Cal Cities and the National League of Cities endorsed a letter by Rep. Jim Costa calling for protection of the Community Development Block Grant (CDBG) Program. For over 50 years, the federal program has provided flexible funding for local infrastructure projects, economic development, housing, public safety, and other public services.
According to the nation’s top housing agency, CDBG funds have helped house over 1.8 million households and created more than 500,000 jobs since FY 2005. But despite its long-standing impact, the program is now on the chopping block.
In May, the Trump administration released a budget proposal with deep cuts to programs administered by the Department of Housing and Urban Development (HUD) — including the elimination of the CDBG program.
What’s next?
To fund the federal government for Fiscal Year 2026, Congress must pass 12 appropriations bills by Sept. 30. In the past, lawmakers have relied on temporary spending bills known as continuing resolutions, which kick appropriations negotiations through the end of the year.
Earlier this month, Congress passed a reconciliation bill, but there is disagreement among budget experts about how much the bill will add to the federal debt. This uncertainty may drive pressure to reduce spending through appropriations — including through cuts to federal grant programs that support local governments.
For now, the FY 2026 Transportation, Housing, and Urban Development bill includes level funding for CDBG at $3.3 billion — the same amount Congress has provided for the last three fiscal years. Costa’s letter supports the funding currently included in the bill and urges fellow lawmakers to protect the funds through the remainder of the appropriations process.
Cal Cities will work with NLC to protect federal funding for local governments in the appropriation process. More information about NLC’s efforts is available online.