Fall River’s Community Development Agency Faces Uncertain Future as Trump’s Budget Threatens Vital HUD Funding

FALL RIVER ─ Over the past fifty years, the city’s Community Development Agency has directed millions of dollars in federal grants from the U.S. Department of Housing and Urban Development towards a myriad of needed services, including combating homelessness, providing rental assistance, and purchasing essential fire equipment. But with President Donald Trump’s proposed FY 2026, Fall River officials are concerned about sweeping cuts to the Community Development Block Grant and HOME programs, and the future of the local CDA.

“The elimination of these programs could just be devastating,” said CDA Executive Director Michael Dion. “It’s just a negative when you see all the good these programs have done. There isn’t an aspect of government that CDA doesn’t touch.”

The Senate narrowly passed the budget bill on Tuesday, and it is now in the hands of the House of Representatives.

Dion isn’t worried about the current fiscal year 2026. CDA is poised to receive $3.87 million for the CDBG, HOME, and Emergency Solutions grants, which provide services for the homeless.

However, the city’s CDA has seen cuts over the past few years. In fiscal year 2021, the agency received $4,284,558 from HUD.

His concern is what will become of the grant money in 2027, where Trump is looking to do away with CDBG and HOME programs.

According to the Bipartisan Policy Center, Trump’s budget originally sought to cut 44% of the HUD budget to the tune of over $30 billion. The federal agency has already seen massive cuts in its workforce.

Proposed cuts will severely impact programs

“This budget year, you will see the continuation of several projects. You’ll see sidewalks being done, economic development, recreational programs, the section 108 loan program for the fire trucks,” said Dion.

In addition, CDA will continue to fund the Council on Aging for the city’s four drop-in senior centers, funding the police department for the walking beat cops, as well as funding to local non-profit agencies like the Catholic Social Services to help the homeless and the Greater Fall River RE-CREATION for youth programs.

“Now some of those programs will be funded with unexpended funds from last fiscal year,” said Dion.

With the unexpended funds, Dion said CDA will be able to meet its more than $500,000 in funding toward community policing, $319,000 toward senior centers, and $180,000 to RE-CREATION, to name a few appropriations from HUD.

With the uncertainties surrounding Trump’s budget, the future of important funding to programs and non-profits is also uncertain, including CDA.

“If the federal government ends community block grant money, this office is out of business because that’s what pays our salaries,” said Dion.

The city could be on the hook to pay for fire trucks

If the HUD funding goes away, the city will have to go internally to fund all street and sidewalk projects and the operation of senior centers.

“And no park projects will be done at all. It would have a major impact on economic development projects. The non-profit organizations will have to seek alternative funding,” said Dion.

And it will force the city to be responsible in paying off the balance of $7.5 million in loans for new fire trucks. 

In 2016, HUD approved a Section 108 Loan Guarantee Program loan request from its Community Block Grant program for $4.9 million submitted by CDA to purchase fire equipment that included six new fire trucks to help replace the fire department’s woefully aging fleet.

CDA was approved again in late 2022 for a loan of $2.5 million to purchase replacements for Aerial Ladder Truck 4 and Engine Pumper 9.

A great deal for taxpayers since CDA is paying off the loans rather than being repaid through the general fund.

But that may all change if the CDBG grant goes away, and the city will have to find an additional $632,000 a year to pay back the loans in an already challenging fiscal climate.

“It could be disastrous,” said Dion.