Centre submits CDBG application; Warns critical funding may not materialize
BELLEFONTE — Centre County commissioners moved to secure federal funding to replace waterlines at two locations in Haines Township, but warned the program could vanish under President Donald Trump’s proposed budget.
The Community Development Block Grant (CDBG) program has long supported rural communities, and its potential elimination could leave critical infrastructure projects without funding.
Commissioners narrowed the list of projects down to two options after SEDA-COG Project Coordinator Leslie Hosterman presented four for consideration in July.
The approved projects include the Mountain Avenue Water Line Replacement in Woodward, which will replace 700 feet of failing water main, and Aaronsburg’s HAMA Plum Street Water Main project, which will replace water mains and valves along W. Plum Street and W. Aaron Square.
The county is seeking a total of $282,226 in CDBG funds for the improvements.
In recent years, Centre County has concentrated its CDBG applications on water and sewer projects, targeting infrastructure improvements that are often too costly for rural communities to handle on their own.
“A lot of counties and areas around the country spend the monies on urban development and other related projects, but we have, for almost 30 years, focused directly on water and sewer projects,” said Commissioner Steve Dershem, noting that this approach has improved the county’s success in the competitive CDBG allocation process.
“It’s made a big difference in a lot of our rural communities that otherwise would have no way of funding, oftentimes very expensive, DEP-mandated upgrades to their infrastructure,” he said.
“Lots of our smaller, rural communities just do not have the local funding to maintain, fix or repair these older systems, so they are failing — and failing our residents,” said Hosterman. “CDBG is really supportive and helpful when it comes to that much needed funding.”
Speaking as the former president of SEDA-COG, the regional development organization comprising 11 counties in central and eastern Pennsylvania, Commissioner Mark Higgins warned that President Donald Trump and congressional Republicans’ proposed federal budget would defund the CDBG program, putting rural communities at serious risk.
“Unfortunately, at least in the president’s budget, community block grants have zero funding,” said Higgins. “For rural Pennsylvania, zeroing out the community development block grant funding would be devastation.”
Between 1984 and 2020, Centre County used CDBG for over 100 projects, spanning almost every township and borough in the county. Development projects have ranged from ADA improvements at municipal buildings to water main replacements to sewer upgrades.
Nationwide, the program provides billions of dollars each year to help lower-income communities fix failing infrastructure and address public safety threats. Last year, the county used the money to repair Eagle Creek’s aging sewage system, which officials said could have rendered homes uninhabitable if left unaddressed.
“These projects are really crucial to the wellbeing of rural communities,” said Commissioner Amber Concepcion. “We certainly support the continuation of this federal program.”
With the federal budget deadline approaching Oct. 1, county officials say Congress needs to act now to secure funding for critical infrastructure projects.
Commissioner Mark Higgins urged Centre County’s federal legislators — Representative Glenn Thompson, who has previously supported the program, and Senators John Fetterman and Dave McCormick — to back CDBG funding and ensure communities receive the resources they need.
If lawmakers defund CDBG, the county could finish existing projects but would be unable to start new ones. Commissioners said aging water and sewage infrastructure in many communities makes continued funding critical.
“It is up to our US senators and congresspeople to decide whether that program continues to receive funding or whether it will be zeroed out,” Higgins said.