Feb 29, 2016 - We write to express our support for Community Economic Development (CED) program authorized by the Commun
February 29, 2016
The Honorable Tom Cole Chairman Subcommittee on Labor, HHS, & Education House Appropriations Committee 2358-B Rayburn House Office Building Washington, D.C. 20515 The Honorable Rosa DeLauro Ranking Member Subcommittee on Labor, HHS, & Education House Appropriations Committee 1016 Rayburn House Office Building Washington, D.C. 20515 Dear Chairman Cole and Ranking Member DeLauro: We write to express our support for Community Economic Development (CED) program authorized by the Community Services Block Grant Act. We request a Fiscal Year 2017 appropriation of $29.883 million for CED, which is the same as the Fiscal Year 2016 enacted level.
Under this program, local Community Development Corporations (CDCs) provide financing for business and development activities designed to address the economic needs of low-income individuals by creating employment and business development opportunities. The emphasis of the CED is job creation, and the program standards required are the most stringent among federal community development programs. Most federal agencies have cost per job targets of $40,000 to $50,000, yet CED regulations require job creation at no more than $20,000 per job and that at least 75% of the jobs created under CED are targeted to low income individuals. This program is successful because of its flexibility and impact on local communities. CDCs use CED funds with other sources of public and private capital to finance commercial and industrial facilities, small businesses, and mixed use projects. CDCs leverage $7 in private capital to every $1 in federal funds for projects in communities with high poverty and unemployment rates. The result of this targeted approach to job creation is thousands of jobs for low income individuals and over $100 million of investment in rural and urban communities across America. Maintaining fiscal discipline is a top priority, and we want to work with you toward that goal. However, we hope you will consider the important role this program plays in American communities as the Committee prepares to mark up the FY 2017 funding measure for the Department of Health and Human Services. Sincerely,
