For decades, federal place-based programs have helped address differences in resources and economic opportunity in communities across the US.
These programs invest in communities in a variety of ways, including the following:
- Direct program spending, such as the Community Development Block Grant Program, allocates federal funds through formulas or competitive grants to cover the costs of place-based programs, with the funds administered by local governments.
- Tax expenditures, such as the Low-Income Housing Tax Credit and the New Markets Tax Credit, drive down the overall cost of certain projects by decreasing the amount taxpayers and private companies owe to the federal government.
In an analysis of some of the largest, recurring federal place-based programs, we find that although overall spending has increased in the past 15 years, direct program spending has not. As a result, the role of the private sector in determining where and how federal dollars are spent has grown, while the role of state and local governments has shrunk.
In the data tool below, we break down federal spending on 13 major recurring federal place-based programs from 2010 to 2024. Understanding how federal commitments for place-based programs have shifted over time can help policymakers, practitioners, and community leaders assess whether spending is sufficient and whether programs align with community needs.
What We Found
From 2010 to 2024, federal spending on major recurring place-based programs increased from approximately $44.1 billion to $60.7 billion (in inflation-adjusted terms).
Combined federal spending on these 13 programs increased steadily from 2014 to 2018. It then rose significantly in 2020 because of COVID-related spending and has moderately decreased in the years since.
Tax expenditures for major recurring place-based programs have substantially increased since 2010. This increase is driven by programs such as the Low-Income Housing Tax Credit program, which incentivizes the development of affordable rental housing, and Opportunity Zones, which deliver subsidies through the tax code to incentivize private investment in residential housing and commercial or industrial real estate.
By comparison, direct program spending has decreased in inflation-adjusted terms. For example, both the Community Development Block Grant Program (which provides local governments flexible funding to support infrastructure, housing development, and more) and the HOME Investment Partnerships Program (which provides state and local governments grants to create affordable housing) have lost more than a quarter of their funding since 2010.
Why This Matters
Federal place-based programs shape which projects get built, which communities receive investment, and which community needs are prioritized.
Overall spending on place-based programs can shape, for instance, the number of affordable homes built and the number of small businesses able to access financing in a given place.
How funding is distributed across individual programs matters too. Programs administered at the local level, such as the Community Development Block Grant Program, have faced some of the steepest cuts since 2010, while spending on investor-driven programs, such as Opportunity Zones, has increased. Such shifts have implications for the types of projects completed and which communities benefit.
For more information on findings and methods, explore our full report, Federal Place-Based Programs: A Landscape Policy Review.
ABOUT THE DATA
We compiled historical expenditure and appropriation data for 13 of the largest, longest-standing, and most visible federal place-based programs from 2010 to 2024. As such, this tool doesn’t capture spending on all federal place-based programs.
We relied on data from the following sources:
- CohnReznick
- Joint Committee on Taxation
- National Park Service Federal Historic Preservation Tax Incentives program
- US Department of Agriculture Rural Development programs
- US Department of Education Promise Neighborhoods program
- US Department of Health and Human Services Community Economic Development program
- US Department of Housing and Urban Development Community Development Block Grant, Choice Neighborhoods, HOME Investment Partnerships, and Low-Income Housing Tax Credit programs
- US Department of the Treasury Community Development Financial Institutions Fund transaction-level reports and New Markets Tax Credit Program
- US Economic Development Administration programs
US Environmental Protection Agency Brownfields and Land Revitalization program
PROJECT CREDITS
This data tool was funded by the Center for Local Finance and Growth. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders. Funders do not determine research findings or the insights and recommendations of our experts. Further information on the Urban Institute’s funding principles is available at urban.org/fundingprinciples.
RESEARCH Brett Theodos, Ilina Mitra, Tomi Rajninger, Brady Meixell
DATA VISUALIZATION AND DEVELOPMENT Rachel Marconi and Lydia Nguyen
EDITING Dana Ferrante and Lauren Lastowka
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