Print More

New York City lost roughly $2 million dollars in Community Development Block Grants (CDBGs) last year as a result of recent changes to the definition of what constitutes a Metropolitan Statistical Area (MSA). When the federal Office of Management and Budget enacted these changes in 2003, nearly thirty programs, ranging from Medicare to community service grants were altered, with CDBGs particularly hard hit. A recent report from the General Accounting Office found that 53 cities not considered MSAs under the old standard became eligible for CDBGs in 2003, eating up roughly $36.2 million in funding. The total available dollars, however, remained the same, leaving already eligible cities like New York with a smaller piece of the pie. The report examines how these changes impacted all federal programs, but recommends no specific action. [07/19/04]