Yesterday the White House Office of Management and Budget (OMB) announced that in his fiscal 2006 budget which is scheduled to be released on Monday, President Bush will propose to consolidate 18 community and economic development programs from across the government into a single program entitled "Strengthening America's Communities Initiative." The new program would be administered at the Commerce Department and would be funded at a level of $3.7 billion, far below the roughly $5.3 billion the programs were funded at in fiscal year 2005.

The consolidated program will have new eligibility and accountability criteria.

One main program being consolidated is the Community Development Block Grant Program which is run out of the Housing and Urban Development Department. Chief advocates for the program, including the U.S. Conference of Mayors criticized the consolidation as there would be a major cut in funding at a time when city budgets are challenged. Cities use the program for low-income housing and business development projects.

The consolidation also includes programs from the Agriculture, Treasury and Health and Human Services departments.

The administration is promoting the plan as a way to remove waste and improve efficiency.

The plan is being received cautiously on Capitol Hill.