Which State, Local Grants Got Cut in Obama's 2014 Budget?

The president's new budget proposal increases total federal grant funding to states and localities, but some programs are on the chopping block.
April 12, 2013

President Obama released his FY 2014 budget Wednesday, and the good news for states and localities is that, in the aggregate, it proposes an increase in federal grants to state and local governments.

For full coverage of Obama's budget, click here.

The plan calls for $643.3 billion in state and local outlays, up about 18 percent from FY 2012. But some federal grants will be eliminated or reduced as part of the administration's efforts to find cost savings amid a renewed focus on deficit reduction. Here are some of the state and local grant programs the president has targeted for cuts:

Program: Striving Readers

Agency: Education

What it does: The program seeks to raise literacy levels of middle and high school students in schools that have a significant number of students reading below grade-level. The cut is part of the administration's plan to consolidate education programs.

FY 2012: $160 million

FY 2013: $152 million

FY 2014 proposed: $0

Program: Impact Aid - Payments for Federal Property

Agency: Education

What it does: The feds give money to school districts that are financially impacted by the federal government, typically due to having untaxable federal land within their boundaries. While the administration argues it's a mistake to make payments to schools regardless of how many "federally-connected children" -- children of military personnel or other federal employees -- attend, it still allocated money to the program. But the cuts reflect the administration's argument that most of the districts getting funds have had decades to adjust to the loss of federal property from their tax rolls at this point.

FY 2012: $1.291 billion

FY 2013: $1.226 billion

FY 2014 proposed: $1.224 billion

Program: Preventive Health and Health Services Block Grant

Agency: Health and Human Services (HHS)

What it does: The program, more than 30 years old, provides states with aid to support more than 250 different types of health care activities. The administration has argued for a better coordinated approach, since many of the programs supported by these grants are considered duplicative.

FY 2012: $80 million

FY 2013: $76 million

FY 2014: proposed: $0

Program: Hospital Preparedness

Agency: Health and Human Services

What it does: According to the administration, the feds provided $13 billion from FY 2002 to FY 2012 for state, local and hospital preparedness. Due to previous funding levels and a "constrained budget environment," the administration has proposed shifting funds away from lower-priority preparedness activities.

FY 2012: $375 million

FY 2013: $356 million

FY 2014 proposed: $255 million

Program: Community Services Block Grant

Agency: Health and Human Services

What it does: These federal funds go to Community Action Agencies that seek to reduce poverty. The administration has argued that because the existing system guarantees funding even to agencies that are performing poorly, a standards-based system should be implemented.

FY 2012: $677 million

FY 2013: $643 million

FY 2014 proposed: $350 million

Program: Low Income Home Energy Assistance Program (LIHEAP)

Agency: Health and Human Services

What it does: The program helps poor people pay for heating in the winter and cooling in the summer. The administration says it has targeted LIHEAP funds to where they're needed most. If heating and cooling costs rise, contingency funds can be released to help vulnerable families.

FY 2012: $3.472 billion

FY 2013: $3.297 billion

FY 2014 $2.970 billion

Program: Community Development Block Grants (CDBG)

Agency: Health and Human Services

What it does: The program is especially beloved by cities since it is one of the few big sources of federal funds that go directly to them. Governments have wide latitude in how they use CDBG funds, but they're designed to support programs that assistant low- and moderate-income residents. The administration has said the funds are not well targeted and the program lacks focus. The numbers below are combined for both entitlement and non-entitlement recipients.

FY 2012: $2.949 billion

FY 2013: $2.801 billion

FY 2014 proposed: $2.784 billion

Program: HOME Investment Partnerships Program

Agency: Housing and Urban Development (HUD)

What it does: According to HUD, its the largest federal block grant to states and localities exclusively designed to create affordable housing for low-income households.Grantees have a wide range of uses for the funds, including purchasing, rehabilitating and building housing for rental or ownership. According to the budget, the cut is mitigated by a $1 billion investment in the Housing Trust Fund.

FY 2012: $1 billion

FY 2013: $950 million

FY 2014 proposed: $945 million

Program: Housing for Persons with Disabilities

Agency: Housing and Urban Development

What it does: The funding helps provide affordable housing to disabled people through a program commonly known as Section 811.

FY 2012: $165 million

FY 2013: $157 million

FY 2014 proposed: $125 million

Program: Clean Water and Drinking Water State Revolving Funds

Agency: Environmental Protection Agency

What it does: The feds give money to the states -- which the states match 20 percent -- and then the states loan out the funds to municipalities to help them finance water projects. The administration argues that it's previously provided big support to state revolving funds, and at this point, they're well capitalized. The totals below are combined for the clean water and drinking water programs.

FY 2012: $2.384 billion

FY 2013: $2.241 billion

FY 2014 $1.912 billion

Program: Water and Wastewater Grants and Loans

Agency: Agriculture

What it does: The administration wants to increase loans and reduce grants for the program.

FY 2012: $433 million

FY 2014 proposed: $304 million

Program: State Criminal Alien Assistance Program

Agency: Justice

What it does: These funds flow to states and localities to help them cover the costs of holding undocumented immigrants facing criminal charges.The program has faced steady cuts in recent years, and the Obama administration has previously proposed eliminating it.

FY 2012: $240 million

FY 2013: $238 million

FY 2014 proposed: $0

Program: State Homeland Security Grant Program

Agency: Homeland Security

What it does: The program provides money to law enforcement agencies to help fund equipment, training and other needs to prevent and respond to acts of terrorism and other catastrophes. The program has come under some criticism because of the broad way the money can be used and because its funding formula ensures that the last populated states get the most funding per-capita.

FY 2012: $294 million

FY 2013: $285 million

FY 2014 proposed: $0

Program: Urban Area Security Initiative

Agency: Homeland Security

What it does: Similar to the state grants, this program provides funds for equipment, training and other expenses to address needs of first responders in high-density urban areas. This program, along with the State Homeland Security Grant Program, would be replaced by a new National Preparedness Grant Program.

FY 2012: $490 million

FY 2013: $475 million

FY 2014 proposed: $0

Program: National Pre-Disaster Mitigation Fund

Agency: Homeland Security

What it does: The administration has previously proposed eliminating the program because it's considered duplicative of other FEMA grants. The budget proposes no new funding; instead the program will operate with unobligated funds from prior years.

FY 2012: $36 million

FY 2013: $36 million

FY 2014 proposed: $0

Program: Emergency Food and Shelter

Agency: Homeland Security

What it does: The program funds food, lodging and transportation costs for serving the hungry and homeless in the wake of disasters.

FY 2012: $120 million

FY 2013: $114 million

FY 2014 proposed: $100 million

Program: High Intensity Drug Trafficking Areas (HIDTA)

Agency: Office of National Drug Control Policy

What it does: The program provides federal, state and local law enforcement agencies operating in drug-trafficking regions with funds to help facilitate cooperation, intelligence sharing and other strategies. There are 28 HIDTA areas that cover about 60 percent of the population.

FY 2012: $219 million

FY 2013: $240 million

FY 2014 proposed: $193 million

Program: Dislocated Worker Assistance

Agency: Labor

What it does: The program is designed to help dislocated workers gain reemployment through job search assistance and training. It's being consolidated into the Department of Labor's Universal Displaced Workers Program.

FY 2012: $1.008 billion

FY 2013: $958 million

FY 2014 proposed: $0

Program: Grants-in-Aid for Airports

Agency: Transportation

What it does: By eliminating guarantee funding for large hub airports, the feds can instead focus on funding smaller airports that lack access to other sources of revenue. Large airports would be allowed to increase their own passenger facility charges to compensate for their loss of federal funds.

FY 2012: $3.35 billion

FY 2013: $3.35 billion

FY 2014 proposed: $2.90 billion

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