Article Summary –
President Donald Trump’s 2026 budget proposal includes eliminating the Community Development Block Grant (CDBG) program, which has historically funded infrastructure and housing projects in communities across Wisconsin, including rural areas. The proposed cuts, amounting to a 44% reduction in HUD funding, have sparked concern among state and local leaders who argue that these grants are essential for projects like affordable housing, road improvements, and essential community services, particularly in towns like Soldiers Grove, which face significant financial burdens without such assistance. Despite previous attempts to cut the CDBG program, leaders like Wisconsin Democratic Gov. Tony Evers and Sen. Tammy Baldwin emphasize the critical nature of these funds, urging reconsideration of the cuts to support ongoing and future community development efforts.
Wisconsin’s infrastructure and housing grants face potential cuts by President Donald Trump, with state officials warning that rural areas would suffer most.
The Trump administration’s 2026 budget proposal suggests eliminating the Community Development Block Grant (CDBG) program, originally established in 1974 under the U.S. Department of Housing and Urban Development. This program aids communities with various development projects, including park repairs, library upgrades, road improvements, and housing assistance.
In Wisconsin, CDBG funds have been crucial for projects such as converting a motel into affordable housing in Chippewa Falls, constructing a fire hall and community center in Chili, and improving roads from Lancaster to Oconto Falls.
Currently, Congress is reviewing the budget for fiscal year 2026, starting Oct. 1. Trump’s proposal also suggests reducing rental assistance and cutting 44% of HUD funding overall, causing concern among housing advocates.
HUD Secretary Scott Turner supported Trump’s budget cuts, emphasizing a need for streamlined government processes. Trump had tried to cut CDBG funding in 2017, but senators, including Wisconsin’s Tammy Baldwin, maintained its funding.
Wisconsin Democratic Gov. Tony Evers announced over $18.6 million in CDBG funding for 21 communities for infrastructure. Evers urged reconsideration of Trump’s budget cuts, emphasizing the importance of these investments for Wisconsin’s progress.
Soldiers Grove, with 600 residents, received $1 million to update its 1968 wastewater treatment facility to meet environmental standards. Without this grant, costs would force drastic increases in local utility rates. Village clerk Kaitlynn Ott highlighted the crucial nature of these funds for community health and affordability.
Other Wisconsin beneficiaries include Gillett, granted $1 million for street and utility updates; Minong, for water system and well house improvements; and Ridgeville, to build a new fire station.
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