PAWTUCKET, RI – According to preliminary budget documents obtained by the Washington Post, the Trump Administration is planning to slash U.S. Department of Housing and Urban Development (HUD) funding by more than $6 billion, a 14 percent decrease in fiscal year 2018.  Today, U.S. Senator Jack Reed (D-RI) and Pawtucket Mayor Donald R. Grebien met to discuss the devastating impacts of these cuts for communities across Rhode Island.

Under the draft Trump budget proposal, two HUD programs slated for elimination are the Community Development Block Grant (CDBG) and HOME.  Both programs provide an enormous range of affordable housing, economic development, community revitalization, and social service benefits for Rhode Islanders. 

Reed, the Ranking Member of the Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD), says that if President Trump eliminates these two programs alone it would cost Rhode Island over $20.2 million per year.

“The Trump Administration’s proposed cuts are severe, short-sighted, and harmful to the American people.  These cuts would be devastating to vulnerable families and threaten economic progress in communities across the state.  When it comes to the budget, we need a balanced approach that prioritizes funding for both a strong defense and supporting working families and communities here at home.  We need to ensure our neighborhoods are safe, that kids have access to good schools,  parents have good jobs and can afford to pay their rent or mortgage, and that seniors can afford to retire with dignity,” said Senator Reed.  “The Trump Administration’s proposed HUD cuts would hurt a lot of people, neighborhoods, cities, and towns across the state – leaving many Mayors and Governors at a loss for meeting the needs of the people they represent.  Cutting programs like CDBG and HOME not only prevents public investments within the state, but it also would prevent private investment that is leveraged through these critical federal programs. I fear that this would leave us at a deficit for serving current families in need, and actually increase the number of families and people that could become homeless - putting more pressure on state and local budgets.”

“I am disturbed by the Trump Administration’s proposed plans to take the rug out from under our neediest neighbors. CBDG and HOME grants assist our community and our partners to provide affordable housing, access to food, and job opportunities. These dollars go directly into communities across the country and do so much good, especially right here in Pawtucket,” said Mayor Grebien.

Last year, Senator Reed helped secure nearly $15.2 million in federal CDBG funding to help revitalize local neighborhoods and support affordable housing and economic development programs throughout the state.  Six communities (Cranston: $975,252; East Providence: $713,042; Pawtucket: $1,733,778; Providence: $4,744,409; Warwick; $864,574; and Woonsocket: $1,177,671) received direct CDBG grants.  Additionally, Rhode Island received $4,974,585 in CDBG funds that helped another 20 communities provide decent housing and expand economic opportunity throughout the state.

In recent years, Pawtucket has put CDBG funds to work through a variety of projects, including: developing affordable housing; improving the Leon A. Mathieu Senior Center; renovating Max Read Field; training young adults in culinary skills; and helping stock food pantries.

The HOME program is the largest source of federal funding for producing and constructing quality, affordable housing for working families.  HOME provides formula grants to local communities to fund building and rehabilitating affordable housing for rent or ownership.  Last year, Rhode Island received $5,014,769 in federal HOME funds to allow the state and local communities to develop affordable housing opportunities for low-income families.

Senator Reed says eliminating the CDBG and HOME programs would hurt local job creation, affordable housing production, economic development investments, and other critical developments to upgrade public infrastructure. 

“I can tell you right now: deferring needed repairs like replacing broken windows and heating units and critical housing infrastructure projects is not going to save us money in the long run.  These HUD programs help make a real difference in people’s lives and have a positive impact across the state.  I am going to work hard to oppose these and other ill-advised cuts.  We need to wisely allocate limited resources and ensure tax payers get a strong return on their investment.  When people have a safe place to live and an opportunity to find a job, when neighborhoods have a chance to turn things around, and when cities can invest in community needs, that is when we all thrive,” said Reed, who supports funding CDBG at no less than $3 billion and HOME at no less than $950 million in the coming fiscal year. 

The current federal budget is based on what is known as a “continuing resolution,” or CR, a stopgap measure that keeps funding levels in place after a budget runs its course.  The current CR is set to expire at the end of April.  Congress must either come up with a new spending plan before then, or pass another short-term measure to keep the government funded and prevent a shutdown.

The White House is expected to present a budget proposal to Congress this week.