WASHINGTON - The budget deal the Congress passed late Thursday and that President Barack Obama is expected to sign on Friday has state and local governments worried they may have to make up for cuts in some federal programs.
The resolution to keep the government running for the rest of fiscal year 2011 reduced Community Development Block Grants by 16 percent.
Cities, towns and counties rely on the relatively small program to fight homelessness and blight. For months they have campaigned to preserve every cent of the grants as states pull back on aid to local governments.
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