St. Louis officials say the city will need to be more strategic about how it deploys federal funds aimed to aid the area’s low to moderate-income residents in the future, as funding from the federal government becomes more uncertain.
Community Development Administration Executive Director Nahuel Fefer said the city plans to cut next year’s community development block grant fund by 5% in preparation for expected federal funding cuts.
During his presentation to members of the city’s Housing, Urban Development and Zoning Committee, Fefer said he expects the trend to continue in the coming years as the federal government continues to cut back.
“As the federal government retreats from certain areas and from providing certain services, it's incumbent on us at the local level to be strategic in terms of how we can deploy our limited resources to help fill some of those gaps in order to protect our residents and ensure that basic needs are met,” Fefer said.
The grants, known as community development block grants, are provided by the federal government and fund projects that benefit low- and moderate-income communities through food assistance, workforce development, housing programs and more.
The U.S. Senate's proposed fiscal 2026 budget cuts the grant funding from $3.3 billion to $3.1 billion.
“We do not know at this point where the final appropriation will be,” Fefer said. “Of course, we're in the midst of a shutdown, and so we don't know where the House and Senate and White House will ultimately find a reconciliation.”
The city’s plan amounts to roughly $17.5 million, $3.3 million of which will go toward public services that cover food assistance, workforce development, youth and senior services and job training. Roughly $10 million will go toward planning and administration, low- to moderate-income homeowner assistance and housing production and rehabilitation.
The remaining funds are spread out over several programs, including economic development, commercial façade improvement, code enforcement and other public improvements.
Fefer said 70% of the funds must go to benefiting low- and moderate-income households, and only 19% can be used for public services.
“We are very constrained on the public services side, which is why it’s our most competitive,” Fefer said.
The budget did expand food assistance, which Fefer said the city expects will be a growing need, especially as the current federal government shutdown threatens SNAP benefits for millions of Americans. SNAP benefits will expire starting Saturday.
“I do think that we are seeing across the board, certainly, the effects of the government shutdown, in terms of the impact on access to these essential services,” Fefer said. “Food assistance is a critical need, and that is why we did increase it this year.”
Members of the committee voted unanimously to approve the budget after Fefer’s presentation. It now moves to the full board. The Community Development Administration is currently holding a 30-day public comment period that ends Nov. 12.
An in-person and virtual public hearing will be held at 10:45 a.m. Nov. 6 at 1520 Market St.
