WASHINGTON -- Senator Jack Reed, the ranking member of the Senate Subcommittee on Housing, stated, This is another misguided idea from the Bush Administration. Their proposal takes the "UD" out of HUD. Moving the Community Development Block Grant Program to the Department of Commerce will harm job creation and economic revitalization in rural and urban communities throughout the nation. The Department of Commerce does not have the capacity or the capability to manage these programs. HUD looks holistically at serving the needs of communities. In addition to supporting economic development projects, CDBG funds housing rehabilitation, supportive services for the elderly, the disabled, and children, and community public facilities development. The Department of Commerce has not, cannot, and should not, be responsible for these efforts.In 2004, the CDBG program marked its 30th Anniversary. Community Development Block Grant (CDBG) program is one of the most effective Federal domestic programs to revitalize neighborhoods. CDBG provides vital funding to more than 1,000 communities and all 50 states to spur economic development, to provide affordable housing needs and to undertake other community development activities that benefit low and moderate-income individuals. In fiscal year 2003, one dollar of CDBG funding leveraged $2.79 in private funding and $0.77 in public funding. Over 95 percent of CDBG funds went to activities principally benefiting low- and moderate-income persons. In FY2003, while the economy lost 486,000 jobs, CDBG projects created or retained 108,700 jobs for Americans. CDBG also has a strong record in business retention. While businesses left American shores for other countries, CDBG ensured that over 80 percent of the businesses assisted through the program were still in operation after three years.