The President's budget request for fiscal year 2006 proposes eliminating 18 different community and economic development programs and replacing them with one program called the 'Strengthening America's Communities Grant Program'.

Under this proposal, funding for community and economic development would be cut by 30%, or $1.6 billion, nationally.

The largest program to be eliminated under this proposal is the Community Development Block Grant which currently awards $4.7 billion in support for community development to cities, counties and states across the country.

Community Development Block Grants were already cut this year (FY2005) by 5% nationally.

The table below shows the cuts this year for selected cities and counties, and the possible cuts for next year. If the proposed cuts are distributed equally, the table indicates how much would be lost. The budget proposal states that it would re-focus funding to the most economically-distressed areas. However, the new program would require goals to be met for commercial development, private sector investment and job creation. Communities not meeting the goals would lose funding. 'Bonus' funding would be received only by cities and towns that reduce regulation of business, reduce crime and meet progress goals of the No Child Left Behind Act.*

(Amounts In millions of dollars)