In this issue:

HUD–DOT Partnership to Receive Funding
AGENCIES PLEDGE ENHANCED COOPERATION, GREEN INITIATIVES

Included in the budget as a CDBG set-aside was the Sustainable Communities Initiative (SCI), which allocates its $150 million budget in three ways. Regional planning grants are allotted $100 million, focusing on creating a collaborative effort between HUD and DOT to establish long-term, cross-jurisdictional partnerships with both the public and private sectors. The grant money will be distributed largely to metropolitan planning organizations and HUD block grant recipients.

Metropolitan Challenge Grants receive $40 million, giving local governments additional funding for broader regional plans and for zoning changes and land use policies to establish sustainable growth patterns. Finally, $10 million of the SCI budget is for joint HUD–DOT research to advance transportation and housing linkages, funding a previously announced HUD–DOT interagency partnership.

Housing and Urban Development Gets Increases
CDBG FULLY FUNDED; NEW RULES FOR HOPE VI, OTHER PROGRAMS

HUD receives $43.7 billion in the proposed budget, which is a 7 percent increase from the enacted FY 2009 level. This includes a CDBG budget increase from $3.9 billion in 2009 to $4.5 billion, in addition to $1 billion included in the American Recovery and Reinvestment Act of 2009 (ARRA). The Obama administration is proposing changes to the CDBG formula, focusing on modernization to better target communities with the greatest economic need. The formula will contain a "hold harmless" provision to ensure that communities do not receive less than FY 2009 allocations this year. Specifics on the formula will be addressed in future legislation.

In addition to the regional planning grants mentioned above, the HUD budget also includes: $250 million to HOPE VI for a new program, the Choice Neighborhoods Initiative; $1 billion for a Housing Trust Fund; a $1 billion increase in Tenant-Based Rental Assistance; and adjustment proposals to the HOME Investment Partnership formula.

Department of Agriculture Budget Grows
INCREASED FUNDS FOR REAP, BUT CUTS ELSEWHERE

The administration proposes $25.7 billion for the U.S. Department of Agriculture, a 6 percent increase from the FY 2009 appropriation. The Rural Energy for America Program (REAP) would receive $128 million for loan guarantees and grants, which is a significant increase from the mandatory spending for the program in the 2008 Farm Bill. The Urban and Community Forestry Program received $29.3 million, a negligible decrease from last year. While Congress is unlikely to allow it, the administration has proposed terminating the Watershed Protection and Flood Prevention Operations on the grounds that the program is subject to earmarks and, therefore, has been unable to prioritize projects based on cost-effectiveness.

New Priorities at Transportation
HIGH-SPEED RAIL, AMTRAK FUNDING INCREASE

The FY 2010 budget for the Department of Transportation includes $73.2 billion in funding. With SAFETEA-LU set to expire September 30, 2009, the transportation budget request does not represent a budget approach or recommended funding level for the upcoming surface transportation authorization. Rather, the budget reflects the condition of and OMB estimates for the Highway Trust Fund. The budget assumes that the trust fund will require support from the general fund to maintain baseline spending this year.

Overall funding levels increased slightly from amounts authorized in FY 2009. Increases include 8 percent for highways and bridges, 2 percent for transit, and 15 percent for Amtrak. High-speed rail is slated to receive $1 billion this year, with a planned $5 billion over the next five years.

More Funds for Department of Interior
CLIMATE CHANGE AND WATER ISSUES AT FOREFRONT

The administration proposes $12 billion in funding for the Department of Interior's FY 2010 budget, an 8 percent increase. The budget includes an increase of $22 million for the Climate Impact Initiative, $77.7 million for historic preservation, and a commitment to fully fund the Land and Water Conservation Fund, including state grants. The Climate Impact Initiative includes funding to expand priority climate change monitoring and to develop regional collaborative research hubs for the National Climate Change and Wildlife Science Center.

Department of Commerce Budget Shows Policy Shift
EDA, NOAA, AND 2010 CENSUS ALL BENEFIT

The Economic Development Administration (EDA) receives $284 million in the FY 2010 budget. The EDA budget includes $73 million for public works, $16 million for the Global Climate Change Initiative, $31 million for planning, and $2 million for research. The National Ocean and Atmospheric Administration receives a 2.5 percent increase above levels authorized in the FY 2009 appropriations.

The 2010 census is expected to cost between $13.7 and $14.5 billion. For FY 2010, the budget allocates almost $6.9 billion in funding. An additional $1 billion was included in the American Recovery and Reinvestment Act. Approximately $7.8 billion will be spent on the census in FY 2010, covered by appropriations remaining from FY 2009 plus ARRA and FY 2010 funding. Appropriations for the 2010 census include funding for the American Community Survey, an ongoing statistical survey that replaces the long form in the decennial census.

EPA Funds Increase Dramatically
WATER PROGRAMS TO BENEFIT

The president's budget proposes a significant increase in funding for the Environmental Protection Agency (EPA). The administration proposed $10.5 billion in discretionary funding for EPA in FY 2010, a 45 percent increase from the level enacted for FY 2009.

The budget includes $3.9 billion in Clean Water Funds, a $1.5 billion increase from FY 2009. There is also a proposed $175 million for the brownfields program, which will provide additional assessment, cleanup, and job-training grants.

Department of Energy Shifts Focus
GREATER INVESTMENT IN TRANSMISSION AND EFFICIENCY EXPECTED

The president's FY 2010 budget provides nearly $26.4 billion for the Department of Energy, a 2 percent increase. In a combined effort with HUD, an Energy Innovation Fund was proposed to drive the creation of an energy-efficient housing market, which would include retrofitting older, inefficient housing to spur private lending in the residential sector. The Energy Efficiency and Conservation Block Grant program was omitted from the proposal because it received funding in the ARRA. While the budget does not reflect the generation of revenue from a cap-and-trade system, it does create a Clean Energy Fund as a receptacle for those funds once they are produced.

Department of Homeland Security Budget Supports Disaster Efforts
FLOOD MAPPING AND MITIGATION SLATED FOR INCREASES

The Department of Homeland Security budget includes $10 million in new resources to support integrated planning with DOT to inform development and modernization of intermodal freight infrastructure that links coastal and inland ports to highway and rail networks. The Federal Emergency Management Agency (FEMA) is allocated $6.3 billion, with an additional $3.8 billion for grant programs. Within FEMA, the National Pre-Disaster Mitigation Fund would receive $195 million. The Flood Map Modernization Fund also received a 2.3 percent increase in funding for a total of $225 million.

Climate Bill Moves Through House Committee
HUNDREDS OF AMENDMENTS EXPECTED, DELAYING RELEASE

The House of Representatives began considering the American Clean Energy and Security Act, a bill that creates a cap-and-trade system to manage long-term reductions in greenhouse gas (GHG) emissions. The bill includes language that addresses the effects of the transportation sector and its role in the reduction of GHG emissions through grants to states and metropolitan planning organizations to improve data collection and modeling, develop comprehensive plans, and implement completed plans. Other provisions in the bill include a section on adaptation to climate change, which directs funds to support a National Climate Change Vulnerability Assessment. This would include regional activities, a National Climate Change Adaptation Fund to help localities with the cost of adaptation, and the creation of a National Climate Service to facilitate data collection and provide technical assistance.