The Community Development Block Grant program was reduced by 11 percent for a total funding level for FY 2012 of $2.98 billion, which is a 25 percent cut in just two years. The funding level is slightly higher than the $2.85 billion proposed by the Senate bill, but is sharply lower than the $3.5 billion proposed by the House. In a victory for local governments, the agreement does not include language from the House bill that would have reduced the CDBG cap on administration and planning expenses from its current level of 20 percent to 10 percent. A reduction of the cap would have had a major impact on local planning budgets.
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