|CDFA Special Federal Budget Edition|
President Trump's Budget Proposal
President Trump's budget
, released last week, has already garnered strong reaction on both sides of the aisle in the short time since its release. The budget aims to cut billions of dollars from domestic programs to support a $59.5 billion increase in funding for defense, veteran's affairs, and homeland security. A variety of federally funded, economic and community development programs would either be sacrificed or drastically reduced to support the aforementioned spending increases. CDFA strongly disagrees with the President's budget recommendations
- which would gut essential, longstanding economic development programs - and urges Congressional leaders to reject any budget proposal that weakens federal support for economic development.
The development finance industry has been very vocal in its opposition to the President's Budget. Listed below are several responses to the Budget, issued by partners and friends of CDFA.
Call to Action
CDFA is asking all interested stakeholders to contact your Congressional representatives immediately
, and let them know just how important these federal programs are to state and local economic development.
1. Go to your Congressional district page
, and find your legislator(s).
2. Call your legislator(s) and voice your concerns.
3. Fax a letter to your legislator(s), and forward a copy to CDFA.
4. Follow up with your legislator(s) to ensure that they understand the threat the President's Budget poses to our communities.
To join the CDFA Legislative effort
, contact Tim Fisher
|How the Budget Affects Economic Development|
The Administration's budget would drastically reduce funding to federal agencies that play a vital role in economic development, as well as eliminate numerous federal economic development programs. The affected programs and agencies are listed as follows:
Environmental Protection Agency
Department of Agriculture
- The EPA budget would be reduced by 31 percent, representing a $2.6 billion decrease in funding.
- The budget would slightly increase funding for drinking and wastewater infrastructure, including a $4 million increase in State Revolving Funds (SRF).
- The Water Infrastructure Finance and Innovation Act (WIFIA) program would receive $20 million, equal to the funding provided in 2017.
Department of Commerce
- The USDA budget would be reduced 21 percent, representing a $4.7 billion decrease in funding.
- The $498 million Water and Wastewater loan and grant program would be eliminated.
- $95 million for Rural Business and Cooperative Service discretionary activities would be eliminated.
Department of Energy
- The Commerce budget would be reduced by $1.5 billion, or 16 percent.
- The Economic Development Administration would be eliminated.
- The Minority Business Development Agency would be eliminated.
- Federal funding for the Manufacturing Extension Partnership would be discontinued.
Department of Housing and Urban Development
- The DOE budget would be reduced by $1.7 billion, or 6 percent.
- The Title 17 Innovative Technology Loan Guarantee Program would be eliminated.
- The Weatherization Assistance Program would be eliminated.
- The State Energy Program would be eliminated.
Department of Transportation
- The HUD Budget would be reduced by $6.2 billion, or 13.2 percent.
- The Community Development Block Grant (CDBG) Program would be eliminated.
- The HOME Investment Partnership Program, Choice Neighborhoods, and the Self-help Homeownership Opportunity Program would all be eliminated.
Department of the Treasury
- The DOT budget would be reduced by $2.4 billion, or 13 percent.
- The Transportation Investment Generating Economic Recovery (TIGER) Grant program would be eliminated.
Small Business Administration
- The Treasury budget would be reduced by $519 million, or 4.1 percent.
- Community Development Financial Institutions (CDFI) Fund grants would be eliminated.
- The budget eliminates everything but administrative support for the New Markets Tax Credit (NMTC) Program, which is operated through the CDFI Fund.
- The SBA budget would be reduced by $43.2 million, or 5 percent.
- Regional Innovation Clusters and Growth Accelerators would be eliminated.
- $28 million in microloan financing and technical assistance for small businesses and startups would be maintained.
Alongside the cuts to cabinet and major agency funding, the budget also eliminates funding to several critical, regionally focused agencies. Those agencies are:
- Appalachian Regional Commission
- Delta Regional Authority
- Denali Commission
- Neighborhood Reinvestment Corporation
Included below are a good collection of budget overviews, each of which provides a more thorough analysis of how President Trump's budget will affect federal programs.
The Council of Development Finance Agencies is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private and non-profit entities alike. For more information visit CDFA.net or email email@example.com
Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
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