PROVIDENCE, RI – In an effort to help strengthen local neighborhoods and support economic development and affordable housing programs throughout the state, U.S. Senator Jack Reed today announced that Rhode Island will receive $29,614,503 in new federal aid from several federal housing and community development programs.

Reed, a member of the Appropriations Committee, who helped secure the funds in the fiscal year 2025 continuing resolution (CR) appropriations bill, noted this year’s funding levels are based on the Biden Administration’s final budget, which was untouched by cuts from the Trump Administration when Congress passed the full-year CR in March.  

As a result, Rhode Island’s allocations include:

  • $16,616,289 in Community Development Block Grant (CDBG) funds
  • $5,825,296 from the Home Investment Partnerships (HOME) program
  • $3,001,259 from the Housing Trust Fund
  • $1,469,265 from the Emergency Solutions Grant (ESG) program
  • $1,484,128 from the Housing Opportunities for Persons With AIDS (HOPWA)
  • $1,218,265 through the Recovery Housing Program (RHP)

The federal investments are administered by the U.S. Department of Housing and Urban Development (HUD), which Senator Reed oversees as both an authorizer on the U.S. Senate Committee on Banking, Housing, and Urban Affairs, and as an appropriator on the Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD).

“This federal funding will help strengthen neighborhoods, advance opportunities for local economic development, and ensure more Rhode Islanders have a healthy and safe place to live.  These programs help cities and towns expand housing options and move forward with capital improvement projects that can spur economic growth and development.  Unlike President Trump, whose Fiscal Year 2026 budget proposal calls for the elimination of many of these essential government programs. I’m committed to improving public infrastructure, boosting housing supply, and upgrading community assets.  From increasing affordable housing opportunities, to repairing roads and extending sidewalks, to enhancing parks and clean water infrastructure, these funds help revitalize neighborhoods and enhance economic development.  With Rhode Island experiencing an alarming affordable housing supply shortage, this critical funding will also bring millions to our state to help preserve and build more affordable housing,” said Senator Reed.

President Trump’s fiscal year 2026 preliminary budget request to Congress would eliminate the CDBG and HOME programs and devastate HUD with a 43 percent cut in funding. Furthermore, it would place a massive burden on state and local budgets by cutting HUD rental assistance programs by nearly half and shrinking federal homeless assistance programs.

CDBG provides local communities with a flexible source of federal funding to address a wide range of neighborhood development needs.  The funds may be used for capital-improvement projects or distributed to non-profit organizations to increase housing, supportive service, and job opportunities.  Eligible communities may also apply to the state, which annually allocates federal CDBG funds through a competitive process.  CDBG funds may also be used to address a variety of needs from revitalizing distressed areas by removing blight and assisting with infrastructure projects.

Several Rhode Island cities will split over $16.6 million from this round of CDBG funding, including allocations for:

  1. Cranston: $1,085,975
  2. East Providence: $772,761
  3. Pawtucket: $1,776,064
  4. Providence: $5,227,138
  5. Warwick: $948,131
  6. Woonsocket: $1,050,583
  7. Rhode Island statewide: $5,755,637
  8. TOTAL: $16,616,289

HOME is a major federal block grant program providing funding to state and local governments to expand and preserve the supply of quality, affordable housing for working families.  Providence will receive $1,414,533 in HOME funds, while Pawtucket will receive $520,010, Woonsocket will receive $333,115, and a pot of funds for communities across the state will total $3,557,637.

Senator Reed created the national Housing Trust Fund (HTF) in the Housing and Economic Recovery Act of 2008.  The HTF is an affordable housing production and preservation program.  Under the law, government-sponsored entities Fannie Mae and Freddie Mac are required to contribute annually to the HTF.

ESG provides annual grants to state and local governments to upgrade and expand emergency homeless shelters.  In this round of funding, Providence will receive $476,119 in ESG funds, Pawtucket will receive $155,836, Woonsocket will receive $93,908, and communities across the state will share an additional $743,402.

Providence will also receive $1,484,128 in HOPWA funds, which help communities and nonprofit organizations offer housing assistance and related supportive services to low-income individuals who have been diagnosed with HIV/AIDS.

To help more effectively combat the opioid crisis and ensure people with substance abuse disorders can access safe housing, Rhode Island will also receive $1,218,265 in Recovery Housing Program (RHP) funds.  Senator Reed backed this program as part of the Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment (SUPPORT) for Patients and Communities Act.  This federal funding will help Rhode Island provide stable, temporary housing to individuals in recovery from a substance use disorder.