Feb. 27, 2025
Federal Resources for Disaster Relief and Housing and Homelessness Programs
The federal government is adapting to proposed cuts to staffing, budgets and programs. As shared in the Feb. 13 update, recent White House executive orders have set in motion an unprecedented effort to scale back the federal government and root out what the administration identifies as “waste.”
As Senate-confirmed Cabinet positions officially step into their agency’s leadership roles, we expect to see these downsizing efforts in full swing, with direct impact on cities to be determined. The recent downsizing of two departments in particular – the Department of Housing and Urban Development (HUD) and the Federal Emergency Management Agency (FEMA) – are likely to affect cities.
Disaster Relief
The White House announced they intend to reduce HUD by half, including drastic staff reductions in the Office of Community Planning and Development (CPD), which runs the Community Development Block Grants for Disaster Recovery (CDBG-DR). Several media sources have reported an anticipated 84% reduction in CPD staff, which would hurt the operational capacity of programs including the general CDBG program.
Changes at the federal level are already being felt locally. On Feb. 12, FEMA Acting Administrator Cameron Hamilton denied Governor Brian Kemp’s request to extend the 100% federal cost share for debris removal and emergency protection measures following Hurricane Helene.
The federal cost share would revert to the standard 75%, and any further disaster relief funding for impacted communities will have to come from the state alone. The Governor has proposed funding in his FY25 budget to cover the 25% non-federal share after the 100% federal reimbursement period concludes.
Housing & Homelessness Programs
In addition to CDBG, HUD’s Office of Community Planning and Development is also home to the Continuum of Care (CoC) program, which is the primary funding source for state and local governments to coordinate solutions for homelessness.
On Jan. 17, the Biden White House awarded $3.6 billion through the CoC program to help people transition from homelessness to permanent housing. While it takes time for funds to be fully obligated through award letters and grant agreements, no movement on the disbursement of these funds has occurred to date. The announcement would bring $75 million to Georgia to 61 agencies administering 188 projects across the state.
In addition to the federal funding changes, the downsizing of HUD and especially the CPD office could mean delays in the disbursement of funds and possible reduction or elimination of programs in the future.
In Summary
Reductions in federal programs and spending will mean that state and local governments must cover the difference in funding or reduce services offered. While the full extent of these downsizing efforts remains to be seen, city leaders must stress to their members of Congress the critical role of federal and local partnerships in community development. Cities rely on federal resources to coordinate effective responses to a variety of issues, from disaster relief and recovery to homelessness, and all of those responses require support from all levels of government.
Note: On Feb. 24, the U.S. Environmental Protection Agency announced that President Trump appointed Kevin McOmber, former Suwanee City Councilmember, to lead EPA’s Southeast Region (Region 4), which covers Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee. Regional Administrator McOmber was elected twice to the Suwanee City Council and has experience in environmental planning, water resources, stormwater management and sustainable urban development in Georgia. Read more in the news release.