NADO Alert: President’s FY2018 Budget Request Includes Elimination of Community and Economic Development Programs

Today the Trump Administration released its (FY) 2018 budget request, A New Foundation for American Greatness. The budget recommends $668 billion in defense discretionary spending (an increase of $22 billion above the limit set by the 2011 Budget Control Act) and $479 billion in non-defense discretionary spending (a decrease of $57 billion from the limit set by the 2011 Budget Control Act).

Of the $57 billion savings in FY2018 non-defense discretionary spending, $27 billion comes from program eliminations and $30 billion is attributed to program reductions. A full accounting of these savings is available here. The majority of these eliminations were included in the administration’s budget blueprint released in March.

Key Budget Provisions Impacting NADO Members

Elimination of the U.S. Economic Development Administration; $30 million is provided to conduct an orderly closure of the agency

Elimination of all federal-state regional commissions with funding only provided to conduct orderly closures of the agencies

Appalachian Regional Commission: $27 million

Delta Regional Authority: $3 million

Denali Commission: $7 million

Northern Border Regional Commission: $1 million

Elimination of the U.S. Department of Housing and Urban Development’s Community Development Block Grant (CDBG) Program and HOME Investment Partnerships Program

Elimination of the U.S. Department of Agriculture’s Water and Wastewater loan and grant program and discretionary activities of the Rural Business and Cooperative Service

Elimination of the Federal Emergency Management Agency’s Flood Hazard Mapping program

Elimination of the U.S. Department of Transportation’s TIGER discretionary grant program

Elimination of the U.S. Department of Labor’s Senior Community Service Employment program

Elimination of new grants under the U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund

Elimination of categorical grants under the U.S. Environmental Protection Agency

The budget request is not a mandate. Congress is charged with crafting the annual appropriations bills that fund federal agencies and will be holding hearings in the coming weeks as they begin to craft their FY2018 appropriations bills.

At NADO, we are committed to advancing legislation and spending packages which continue investment in regional economies. We believe the cuts included in President Trump’s budget would severely impact communities throughout the country. We will be working with other stakeholder groups to communicate the importance of these programs in supporting locally driven community and economic development and will continue our outreach to House and Senate Appropriations Committee staff and members of Congress to advocate for these programs.

NADO’s comprehensive analysis of the president’s FY2018 budget request will be distributed to members next week. This report details the budget request’s long-term spending targets, assumptions for savings, and agency specific recommendations. In addition, please join NADO legislative staff for a webinar on the impacts of the budget request on regional development organizations on May 31st 2:00 p.m. Click here to register.

Susan Howard

Director of Government Relations and Legislative Affairs
National Association of Development Organizations (NADO)

[email protected]

202.624.8590 (office) 202.487.4847 (cell)