$26.2 Million in Federal Aid Slated for RI Economic Development & Housing Initiatives

PROVIDENCE, RI –Today,U.S. Senators Jack Reed and Sheldon Whitehouse and U.S. Representatives Seth Magaziner and Gabe Amo announced that Rhode Island is getting a new injection of $26,226,873 in federal aid from the U.S. Department of Housing and Urban Development (HUD) to build stronger communities and address local priorities in housing, public facilities, infrastructure, parks, community services, homelessness resources, and economic development opportunities.
This includes:
This federal funding supports local priorities that improve essential infrastructure and make a positive difference for neighborhoods. After seeking community input, CDBG and ESG funds are administered by the state and cities to non-profits and local entities based off of a competitive application process. The CDBG, HOME, and ESG funding may be allocated by the state and local communities from a period spanning July 1, 2026 to June 30, 2027.
Senator Reed, who serves as both an authorizer on the Senate Banking, Housing, and Urban Affairs Committee, and as an appropriator on the Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD), helped secure these funds in the fiscal year 2026 appropriations law and stated: “This federal funding delivers far-reaching benefits that will strengthen neighborhoods, advance opportunities for local economic development, and ensure more Rhode Islanders have a safe, healthy 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. 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.”
“Safe communities and affordable housing are the building blocks to financial stability. These big federal investments will be a boon to Rhode Island families, who have gotten squeezed by rents in recent years amidst a nationwide affordable housing supply crunch. ?Kudos especially to Senator Reed, who is a national leader on housing policy and has long advocated for this grant funding on the Appropriations Committee,” said Senator Whitehouse.
“Everyone deserves a safe, affordable place to call home,” said Magaziner. “I am proud to work with my colleagues in the Rhode Island congressional delegation to secure federal funding that will build more housing, repair local infrastructure, and improve quality of life for Rhode Islanders.”
“Rhode Islanders deserve safe, affordable housing, no matter their income or background,” said Congressman Gabe Amo. “This federal funding will help strengthen housing infrastructure, support efforts to end homelessness, and ensure communities across our state have the resources they need to thrive.”
President Trump sought to eliminate CDBG, HOME, and other essential government programs. But for fiscal year 2026, Congress rejected President Trump’s efforts to slash housing and community development funds and instead funded HUD at $77 billion, including $3.3 billion for CDBG nationwide, which essentially maintains the prior year's funding.
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 for revitalizing distressed areas by removing blight and assisting with infrastructure projects.
Several Rhode Island cities will split over $16.5 million from this round of CDBG funding, including allocations for:
Cranston: $1,091,152
East Providence: $729,741
Pawtucket: $1,751,123
Providence: $5,216,462
Warwick: $954,252
Woonsocket: $1,050,725
Rhode Island statewide: $5,738,858
TOTAL: $16,532,313
HOME provides funding to states and localities that communities use in partnership with local non-profits for a wide range of activities including building, buying, or rehabilitating affordable housing, which can be for rent or homeownership, or providing direct rental assistance to low-income families. Providence will receive $1,331,217 in HOME funds, while Pawtucket will receive $513,652, Woonsocket will receive $364,138 and a pot of funds for communities across the state will total $3,434,745.
ESG provides annual grants to state and local governments to upgrade and expand emergency homeless shelters and street outreach. In this round of funding, Providence will receive $459,410 in ESG funds, Pawtucket will receive $156,097, Woonsocket will receive $92,335, and communities across the state will share an additional $752,210.
Providence will also receive $1,591,374 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 nearly $1 million in Recovery Housing Program (RHP) funds. This federal funding will help Rhode Island provide stable, temporary housing to individuals in recovery from a substance use disorder.