LIMA — The city of Lima could be in line to lose more than $1 million in federal funding if the White House’s proposed budget becomes a reality.
Lima Community Development Director Susan Crotty voiced her concerns over President Donald Trump’s proposed budget, which calls for increases in defense spending while imposing large cuts in domestic programs, including the Community Development Block Grant and the HOME grant, both run through the U.S. Department of Housing and Urban Development. As an entitlement community, Lima is eligible to receive funds directly from these programs, meaning the city could be at risk of a significant funding shortfall if these programs are eliminated.
“For this program year, which runs from October through September, we received a little over $1.2 million for these programs,” Crotty said. “The city can’t make that up through general fund money.”
Funds have been used for low-income housing initiatives, for blighted property demolitions, for facilities such as the Bradfield Center and for city parks and recreation programs. Last year, $500,000 in HOME funds were leveraged to help get the National Bank Building renovation off the ground.
“We would have to make some very difficult decisions if this budget as it is now is adopted,” Crotty said.
A community meeting going over the city’s upcoming grant plans will be held at 5:30 p.m. May 1 at the Lima Municipal Building.
