WHITE HOUSE PHOTO
President Donald Trump
THE VALLEY – Orders from President Donald Trump freezing federal money are threatening redevelopment and environmental cleanup projects in the Valley, according to officials from the Naugatuck Valley Council of Governments (NVCOG).
“This abrupt decision jeopardizes and threatens to derail vital private real estate development deals, housing initiatives, and regional economic revitalization efforts across the region,” according to a prepared statement from NVCOG, the area’s planning agency.
President Trump took office Jan. 20 and issued a series of executive orders – 36 as of Jan. 31, according to the federal registry.
With those orders – and a memo issued late Monday, Jan. 27 – the Trump administration declared a freeze on many federal grant programs. The move prompted widespread media coverage and pushback from Democrats.
The administration rescinded the memo on Wednesday, Jan. 29 – but also said they were still looking to trim fat in federal spending.
NVCOG’s press release explaining what the freeze would do to Valley projects was issued Thursday, Jan. 30.
Rick Dunne, NVCOG’s executive director, said as of Friday morning (Jan. 31) his agency could not access some $8.6 million from a federal “revolving loan fund” program.
The move is supposed to be temporary, but Dunne isn’t convinced.
The revolving loan fund is part of the Environmental Protection Agency and it appears as one of 2,600 federal programs targeted by the Trump administration, according to a list published Jan. 28 by The New York Times.
What’s The Revolving Loan Fund?
The Valley is littered with vacant factories that are both eyesores and contaminated. Local officials say the properties are too expensive for the private sector to investigate and clean up so government money – such as the NVCOG’s revolving loan program – is needed. The idea is to get problem properties cleaned up so they attract private investment.
It’s a program that has spurred redevelopment projects locally in downtown Shelton, Ansonia, and Derby.
“Since 2005 the Revolving Loan Fund program has funded 42 Brownfield projects that are anticipated to leverage $350 million in non-federal investments. With its suspension, municipalities and developers alike are left facing stalled projects, financial uncertainty, and scrambling to find alternative funding sources,” according to NVCOG.
It’s a program that “unlocks the ability to finance a deal and give the private sector the chance to make an investment,” Dunne said.
Reaction
Dunne said the federal action this week caused chaos and confusion. He said while a judge blocked the president’s spending freeze, he’s getting mixed messages.
“The judge’s order should have made the funds available, but the EPA has taken the position it only applies to the OMB memo, it doesn’t apply to the EO’s (executive orders), so they haven’t released those funds,” Dunne said.
Dunne said this week’s federal freeze impacts the private sector, not just the bureaucracy.
“The private sector is putting many multiples of their own money into these sites, but they can only do it because we give the money to make the sites clean and bankable,” Dunne said. “This is not about the government needing money to fund the government. Ironically what’s happening this week with Trump is screwing over private real estate developers.”
U.S. Sen. Richard Blumenthal told The Valley Indy said the administration’s actions are hurting Connecticut.
“The Trump Administration’s reckless actions are having a direct impact on Connecticut, disrupting and damaging critical community projects. Cleaning up toxic waste in neighborhoods is essential to the economic growth of communities by creating new jobs, revitalizing communities, and reducing health risks – an issue that was supported by both Republicans and Democrats when these funds were enacted into law,” Blumenthal said. “I’ll continue to fight against Trump Administration actions that threaten the funding Connecticut communities rely on to enhance public health, public safety, and critical social services and protect the environment.”
The NVCOG released a list of current projects involved in the revolving loan program:
• 501 East Main Street, Ansonia
• 17 – 19 Henry Healey Drive, Ansonia
• 40 West Street, Bristol
• 0 Maple Street, Naugatuck
• 226 Rubber Avenue, Naugatuck
• 0/280 Elm Street, Naugatuck
• 113/125 Canal Street, Shelton
• 281 Canal Street, Shelton
• 359 Mill Street, Waterbury
• 170 Freight Street, Waterbury
• 698 South Main Street, Waterbury
• 835 Main Street, Waterbury
• 272 River Street, Waterbury
