Chicago Sees CDBG Cuts

Chicago this week said it would cut local spending supported by community development block grants because of federal cuts to the national program.

The city said the U.S. Department of Housing and Urban Development notified it that fiscal 2008 funding would be reduced by about 4% to $82.7 million from $86.1 million.

“The nation’s economy is bordering on a recession,” Mayor Richard Daley said in a statement. “Now is simply not the time to cut back on federal funds that support vital programs aimed at helping Chicago residents who most need our support.”

The city uses the block grants to fund economic development initiatives, housing programs, and job training and placement, as well as services for youth, seniors, the homeless, domestic violence victims, people with disabilities, and health clinics. Since 2002, Chicago has seen its grants lowered by more than $26.5 million.

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