Loss of federal grant program could endanger Jeannette revitalization, city officials say

Community Development Block Grant funding has been a lifeline worth millions of dollars for Jeannette.

But the federal program is slated to be eliminated under a budget reconciliation bill proposed by President Donald Trump that is before the U.S. Senate. Doing away with that program, and Jeannette’s annual allotment, means the city’s ability to undertake future improvement projects could be in jeopardy.

Over the last three years, Jeannette got a combined $928,000 in CDBG funds, a yearly average of $309,315.

“It would be devastating for our community,” said Mayor Curtis Antoniak. “We’ve done so much with CDBG funds.

”It’s going to devastate a lot of communities that really do a lot with that money. You’re talking road repairs, you’re talking demolition, you’re talking so much more.”

The CDBG program, administered by the U.S. Department of Housing and Urban Development since it started 50 years ago, provides annual grants to more than 1,200 towns, counties and states. Some communities — Jeannette, Scottdale, Arnold, New Kensington and Monessen — get their funding directly. Others can apply for a share through Westmoreland County, said Jason Rigone, director of planning and development.

The county’s most recent annual allotment was $3.9 million.

The money is geared toward projects, such as infrastructure improvements, that benefit low- to moderate-income areas.

Elimination of the program in Trump’s One Big Beautiful Bill Act proposal resulted from a line-by-line review of current spending, according to a letter authored by Russell T. Vought, director of the U.S. Office of Management and Budget. In an explanation included in the letter, officials said the CDBG money has been used for wasteful projects.

“This type of a program is better funded and administered at the state and local level,” the letter said.

The U.S. House of Representatives already has passed the proposal.

“We’re very concerned that the current budget is considering eliminating the program as this has been a vital source for so many communities for decades,” Rigone said.

He said the same concern applies to the federal HOME Investment Partnerships Program, which has allowed the county to direct dollars toward the construction of affordable senior housing. That program also is proposed for elimination, according to Vought’s letter.

In Jeannette, CDBG funds have been funneled to countless projects over the years, including sidewalk improvements on Clay Avenue, small business grants, reconstruction of School Street, blight-related demolition, park upgrades and infrastructure work on a South Sixth Street revitalization project.

“It’s incredible what that money’s done over the last 20 years in Jeannette alone,” said solicitor Tim Witt.

About $60,000 of Jeannette’s annual CDBG allotment is designated to make a payment on a loan for the South Sixth Street project, according to information provided by city manager Ethan Keedy.

The loan, taken out in 2011 for $966,000, has a remaining balance of $294,000. Without CDBG funding, that $60,000 payment will have to come from another source, Keedy said.

“We’re going to be on the hook for that,” Antoniak said.

About $90,000 of Jeannette’s current CDBG funding has been earmarked to go toward the resurfacing of Sellers Avenue, which could start later this year. Keedy said he hopes an additional $193,000 will be used to renovate the third floor of city hall into community space.

Loss of the CDBG funding would mean projects the city can’t afford on its own might not get done, Antoniak said.

“We want to get back on our feet,” he said. “It’s going to devastate communities that are struggling.”