The House THUD appropriations bill maintained CDBG at $3.3 billion, rejecting the Trump administration's elimination proposal. However, the One Big Beautiful Bill Act has already created compounding fiscal pressure on cities relying on CDBG for corridor-adjacent programming. Cities are already describing potential CDBG loss as 'devastating.' For city economic development staff, CDBG survival in FY2026 does not resolve the uncertainty affecting multi-year planning. Districts depending on CDBG-leveraged city programming should be modelling FY2027 scenarios with and without the program.

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Senate action on the THUD appropriations bill and whether CDBG elimination reappears in any continuing resolution or reconciliation vehicle before year end.