Congressman Kanjorski Calls Cuts in Community Development Block Grants Catastrophic

WASHINGTON - Congressman Paul E. Kanjorski (PA-11) today confronted the Secretaries of Housing and Urban Development and the Secretary of Commerce, telling them they are "out of touch with reality" when they requested that Community Development Block Grants (CDBG) be slashed by $2 billion and consolidated into a new program.

Congressman Kanjorski rejected the proposal that cuts CDBG funding by 35 percent in the 2006 budget, calling the Administration's cuts morally and fiscally irresponsible.

Carlos Gutierrez, Department of Commerce Secretary, and Alphonso Jackson, Secretary of Housing and Urban Development today testified before the House Financial Services Committee, which has jurisdiction over CDBG grants, asking that the funding be moved from HUD to the Department of Commerce into a new program called Strengthening America's Communities. Congressman Kanjorski utilized his role as the second highest Democrat on the Committee to tell the Secretaries if it were it up to him, he would double the funding for economic development programs.

"Communities in Northeastern Pennsylvania count on this funding for vital economic and community development initiatives. This Administration's 2006 budget slashes funding from Community Development Block Grants by more than $2 billion. This restructuring

is nothing but the ‘smoke and mirrors' tactic that we have seen all too often. The effect of these cuts will have a far-reaching impact in all five counties in my congressional district. I have been contacted by many of the elected officials I represent and they have expressed to me the devastating effect these cuts would have. This proposal cuts at the heart of the communities that rely upon this money for projects that they cannot otherwise support financially."

Additionally, Congressman Kanjorski was among 181 signatories of a March 8 bipartisan letter to the House Budget Committee expressing deep opposition to the changes that would jeopardize the local flexibility of the program that has made it work so well.

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