BOSTON – Senators John Kerry and Edward Kennedy expressed disappointment with proposed Bush Administration cuts to the Community Development Block Grant (CDBG) program, which assists cities and towns across Massachusetts with vital infrastructure funding. President Bush wants to slash CDBG funds by $735 million. The Senate already voted on the bill that includes CDBG funds. Bush has threatened to veto the measure because of his opposition to the increased funds for CDBG. 

“I am tired of President Bush short-changing Massachusetts cities and towns by opposing increases in CDBG funding. Mayors across Massachusetts depend on this funding to provide critically-needed services that increase the quality of life of people who depend on it. To deliver anything less than the amount included in the Senate-passed bill is breaking faith with cities and towns that are already strapped,” said Senator Kerry. “I strongly urge the President to reconsider his position.”

CDBG is a critical part of the Federal government’s efforts to help more cities, urban areas, and states meet the needs of low- and moderate-income communities. CDBG - an important tool for helping local governments tackle serious challenges facing their communities - funds a wide range of activities, including homeownership assistance, housing rehabilitation, public improvements, public services, and economic development projects.

“The CDBG program is a lifeline to our cities as they work to create new job opportunities, improve housing, and strengthen our quality of life,” Senator Kennedy said. “We should be expanding CDBG funding opportunities, and the Administration’s hostility to the program must end.”

Boston Mayor Thomas Menino echoed the Senators concerns.

“It would be a travesty and incredibly shortsighted of President Bush to veto the first increase in CDBG funding in many years. Despite strong bi-partisan support for the program, the Bush administration has tried every year to cut or even eliminate the program. In Boston, for example, our annual CDBG allocation has been cut by 20% since 2001, from $25.6 million in FY01 to just $20.4 million in FY07. CDBG is the most important Federal resource available to cities to address important issues such as affordable housing, first-time homeownership, foreclosures, jobs and job-training opportunities for youth, and services for our seniors and returning veterans,” said Menino.

The text of the letter is as follows:

The President
The White House
Washington, D.C. 20001



Dear Mr. President:

We are writing to express our strong disappointment with your opposition to appropriate funding for the Community Development Block Grant (CDBG) program in the Office of Management and Budget’s Statement of Administration Policy on the Senate FY 2008 Transportation and Housing and Urban Development, and Related Agencies Appropriations bill.

As you will recall, earlier this year your FY 2008 budget proposal cut funding for the Community Development Block Grants (CDBG) Program by $735 million (or 20 percent) from the $3.710 billion enacted in FY 2007. The Senate bill includes $4.06 billion for CDBG -- less than the $4.18 billion passed by the House of Representatives earlier this year. However, neither the Senate nor House bills provide the $4.41 billion appropriated for CDBG back in FY 2001.

CDBG is a critical part of the Federal government’s efforts to help more than 1,100 entitlement cities, urban counties, and States meet the needs of low- and moderate-income communities. CDBG - an important tool for helping local governments tackle serious challenges facing their communities - funds a wide range of activities, including homeownership assistance, housing rehabilitation, public improvements, public services, and economic development projects. According to the Department of Housing and Urban Development, over 95 percent of CDBG funding appropriated in FY 2006 went to activities principally benefiting low- and moderate-income families. Finally, CDBG has helped create and retain 55,957 jobs in FY 2006 and provided vital public services to over 11 million persons.

CDBG funds assist local communities by awarding grants to carry out community development activities. Such activities include mitigation assistance to help eliminate the default currently facing too many working families. The CDBG program has made a difference in the lives of millions of people and their communities across Massachusetts and indeed the Nation. For these reasons, we are extremely disappointed in your decision to oppose an appropriate level of funding for CDBG in FY 2008. We ask that you immediately reconsider your position.

Thank you in advance for your consideration of this request.

Sincerely,

John F. Kerry

Edward M. Kennedy