Trump's plan to nix community block grants may be tough sell - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
May 22, 2017 Newswires
Share
Share
Post
Email

Trump’s plan to nix community block grants may be tough sell

Associated Press

WASHINGTON (AP) — President Donald Trump may have a tough time carrying out plans to kill a popular program that has helped build fire stations, provided meals to needy children and more. Plenty of lawmakers — including some key Republicans — enthusiastically support the Community Development Block Grant program.

Trump's 2018 budget blueprint calls for abolishing the 4-decade-old program, saying it's not well targeted to poor areas and hasn't demonstrated results. It was among billions of dollars in proposed cuts to domestic and foreign aid programs aimed at offsetting more spending for the military and border security.

But a number of Republican lawmakers who oversee government spending told The Associated Press they oppose eliminating the block grants, which fund programs in their districts.

"I've fought strenuously to preserve CDBG funding in the past because I realize its importance in meeting the needs of our seniors and people with lower incomes in our communities," said Charlie Dent of Pennsylvania. Dent is a Republican member of the House Appropriations subcommittee overseeing spending on the Housing and Urban Development Department, which administers the program.

Dent's district includes parts of Northampton County, north of Philadelphia, where $20,000 of CDBG money is used to support a pilot program called Backpack Buddies. Run by Second Harvest Food Bank, it serves about 500 children at local schools and family centers in the county. Each Friday, they get bags stuffed with boxes of macaroni and cheese, cans of fruit and other food to last the weekend.

Tim Herrlinger, director of the county's community and economic development department, says the grants provide critical assistance.

People "don't realize that the ripple effect is now you've got kids who are fed, and their moms and dads and grandparents are fed," Herrlinger said. "And they have streets that are safe to drive on. And if you have needs for disabilities, you have curb cuts and ramps and things that make the quality of life better."

Last year, $3 billion in grants were awarded nationwide for a variety of projects — from building affordable housing to improving infrastructure such as sidewalks and ramps for people with disabilities. The money also helped pay for meals for seniors and enrichment and support programs for low-income children, like the one in Pennsylvania.

Trump's 2018 budget blueprint released this spring would eliminate all funding. The White House is expected to release a more detailed budget plan on Tuesday. But ultimately, it's Congress that controls spending. With Democrats overwhelmingly opposing Trump's proposed cuts, support for the CDBG program from Republican lawmakers — especially those on the powerful Appropriations committees — could keep the program alive.

Republican Rep. David Valadao of California, on the Appropriations subcommittee with Dent, has pledged support for the program. At least two Republicans on the Senate Appropriations housing subcommittee, Shelley Moore Capito of West Virginia and John Hoeven of North Dakota, also back CDBG grants.

Valadao called them a "powerful tool" for local communities. Capito said the program helped rebuild disaster-stricken areas in West Virginia. Hoeven says it's been valuable in North Dakota and he supports it, but also wants to make sure dollars are spent "properly and efficiently."

Critics say the block grant program is fraught with wasteful spending and has strayed from its original purpose of providing housing assistance and economic development in poor communities.

"This money is a big slush fund that just gets dumped on state and local governments," said Robert Rector, senior research fellow for domestic policy studies, family and community at the Heritage Foundation, a conservative think tank. Programs like CDBG are "very, very ineffective because you have one level of government raising the revenue and another level of government spending the money, and that is a recipe for inefficiency."

Audits conducted by HUD's Office of Inspector General turned up problems in at least a dozen communities last year that were awarded CDBG money. Among the concerns: millions of dollars not being used appropriately and weak accounting and procurement procedures.

The block grant program was created in 1974 under President Gerald Ford. CDBG projects are required to meet certain criteria — chief among them that they are targeted to lower-income areas. But local officials have flexibility about how and where to use the money.

In California, about $100,000 a year in CDBG money has been used in Goleta in southern Santa Barbara County to pay for new sidewalks, storm drains, parks, crosswalks and bicycle paths in the city's Old Town area, which has the largest concentration of low-income residents.

"It doesn't seem like a lot of money," said Claudia Dato, the city's senior project manager who oversees its block grant program. "But the money really does help real people and, in many cases, thousands of people."

Other CDBG projects include: a rebuilt public housing facility in Montgomery, Alabama, and repairs to more than 100 homes for low-to-moderate-income residents of Dayton, Ohio. In Indianapolis, such money has been used to help build a new home for the Dover Recovery House, which takes in women suffering substance abuse, including homeless and uninsured women.

Associated Press writer Robert Jablon in California contributed to this report.

Older

A.M. Best Assigns and Places the Credit Ratings of Alwyn Insurance Company Limited Under Review With Developing Implications

Newer

Higgins goes national to fight tax breaks for insurers accused of cheating taxpayers

Advisor News

  • When new investment trends emerge, Gen Z is most likely generation to be first in
  • Could ‘plain English’ become an advisor’s secret weapon?
  • IRI urges Senate action on 403(b) parity legislation
  • Three estate planning ideas to protect your clients and their wealth
  • What advisors must know about accessible client documents
More Advisor News

Annuity News

  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
  • Wink: Annuity sales post strong Q2, led by MYGAs and structured products
  • Legacy Marketing Group partners with Malibu Life USA for annuity launch
More Annuity News

Health/Employee Benefits News

  • New York approves small, individual insurance plan rate hikes for 2027
  • Findings on Heart Failure Detailed by Christine DeJong and Co-Authors (Medicare Accountable Care Organizations: Clinical Performance for Patients With Heart Failure): Heart Disorders and Diseases – Heart Failure
  • $4B at stake in Medicaid change
  • ATTORNEY GENERAL TONG JOINS COALITION CHALLENGING TRUMP ADMINISTRATION'S LATEST ATTACK ON HEALTHCARE FOR TRANSGENDER YOUTH
  • ATTORNEY GENERAL TONG JOINS LAWSUIT CHALLENGING EFFORT TO EXPAND CATASTROPHIC HEALTH INSURANCE PLANS AND AGAIN UNDERMINE ACA PROTECTIONS
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • TDCI reminds consumers to focus on future during Life Insurance Awareness Month
  • TDCI reminds consumers to focus on the future during Life Insurance Awareness Month
  • AM Best Affirms Credit Ratings of Zurich Insurance Group Ltd and Its Main Rated Subsidiaries
  • Best’s Market Segment Report: AM Best Maintains Stable Outlook on China’s Non-Life Insurance Segment
  • Understanding Nonequity Split-Dollar
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.