Our preliminary analysis of the president’s FY 2018 Skinny Budget suggests a cut of $4.31 billion or nearly 37 percent to community and regional development outlays (subfunctions 451 and 452 in the federal budget). Most noteworthy, the proposal would eliminate the Economic Development Administration, cut $210 million from the CDFI Fund by eliminating all grant programs, eliminate the USDA’s Water and Wastewater Disposal program, and end the Community Development Block Grant Program.
To put all of this in context: over the past 35 years, community development spending has been cut by more than seventy-five percent as a share of GDP. While some federal support for community development has shifted to the tax code, tax incentives for community revitalization may also be on the chopping block when the president releases his full FY 2018 budget later this spring.
Below are the proposed cuts:
| Proposed Change | Amount (millions $) |
| Eliminates CDBG | -$3,000 |
| Eliminates CDFI grants | -$210 |
| Eliminates USDA’s Water/Wastewater disposal program | -$498 |
| Increases funding for HUD’s Lead Hazard Reduction program | $20 |
| Eliminates USDA’s Business and Cooperative Service | -$95 |
| Eliminates Economic Development Administration | -$221 |
| Eliminates Denali Commission | -$20 |
| Eliminates Applachian Regional Commission | -$114 |
| Eliminates Delta Regional Commission | -$23 |
| Eliminates Neighborhood Reinvestment Corporation | -$140 |
| Eliminates Northern Border Regional Commission | -$5 |
| Total reduction | -$4,306 |
| Totals for community and regional development, subfunctions 451 and 452 | |
| FY 2017 (estimated) | $11,758 |
| FY 2018 (proposed) | $7,452 |
