Giving Compass' Take:
- Researchers at Urban Institute chronicle how federal spending on place-based programs has shifted over time, examining spending on 13 major recurring programs from 2010 to 2024.
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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 About Federal Spending on Place-Based Programs
From 2010 to 2024, federal spending on major recurring 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.
Read the full article about federal spending on place-based programs at Urban Institute.