President Bush is proposing a major change for the Community Block Grant program that would consolidate many grant programs and move them into the Economic Development Administration in the Department of Commerce.

Although details of the plan were not yet available, the proposed change would consolidate 18 direct grant programs, including the Community Development Block Grant, into two programs and move them into the Department of Commerce.

Funding for the President?s entire ?Strengthening American Communities Initiative? is set at $3.71 billion ? nearly $1 billion less than the $4.7 billion in total Community Development Block Grant funding for FY 2005.

NLC will begin to review the President?s proposal very carefully. Already NLC has joined with other local government and public interest groups to urge a fully funded Community Development Block Grant Program in FY 2006.

In addition to supporting continued funding of not less than $4.355 billion for CDBG formula grants, NLC supports maintaining CDBG as a separate and distinct block grant program with direct funding to cities with populations greater than 50,000 and maximum flexibility and local autonomy in using the grant funds.