Numerous municipalities across Butler County are raising concern about the potential elimination a federally-funded grant program that has supported projects like the replacement of Marion Township’s sewer system.

The proposed 2026 federal budget does not fund the Community Development Block Grant — a program used by the county and municipalities for infrastructure and housing improvements in areas with low-to-moderate-income residents.

“Had we not had that grant funding, we wouldn’t have a public sewer,” said Jason McBride, Marion Township supervisor.

He explained how the township was handed a previously privately-run, defunct sewer system and told to “fix it,” as it had become health and safety issue.

The township initially looked into funding through PENNVEST, which provides low-cost financial assistance to address water, wastewater and stormwater issues, but found the option provided — a grant alongside a low-interest loan — was too steep for the small rural municipality.

“It would have been detrimental to us,” McBride said.

The county, which administers the program for most municipalities, receives just under $1 million a year, but has obtained other block grant funds to pay for large projects, such as the $5-million Marion Township project.

“The Marion Township sewer project was done 100% with CDBG funds because the area was low-income eligible. We were able to put in a brand new sewer system without any tap in fee, without any other fees to make it affordable to them,” said Wendy Leslie, county block grant administrator.

She said regular block grant funds, competitive grants and COVID-19 related grants, which were offered to help communities address impacts of the pandemic, were used to pay for the Marion Township project.

Marion Township is also receiving a new water reservoir tank thanks to program funds.

Leslie has asked Butler County municipalities for help in persuading federal and state elected officials to help save the federally funded grant program.

“The current administration is proposing that it be completely eliminated in 2026,” Leslie said.

She said she has contacted all townships in the county to write letters supporting the program to federal and state lawmakers representing the county. The county commissioners will collect the letters and write their own letter of support, she added.

“We’re writing letters to representatives and senators to tell them how important its to communities and what the funds are used for,” Leslie said. “We hope it's not eliminated, but we expect some cuts.”

At least a handful of municipalities have obliged, sending in letters.

Marion Township mailed its letter Friday, June 13. Jefferson Township supervisors approved drafting a letter at their June meeting.

“It was very disappointing to hear it. We’re in tough times, and we know that the way things are going everything is getting cut back,” McBride said, “but eliminating that would have devastating impact … put strain on all local budgets, and it’d have to lead to increases in taxes on residents.”

Jefferson Township Supervisor Lois Rankin specifically mentioned how projects to improve accessibility have been made possible through the funds.

“Those funds are very much appreciated,” Rankin said. “With our SEBCO Park, there’s always use for that money.”

The funding’s impact can be seen across the county. For instance, over $330,000 in program money has been set aside for a stormwater replacement project in the Homeacre area of Butler Township that hasn’t started yet.

Harrisville’s stormwater system got a nearly $300,000 update using a block grant. Park improvement projects in Harrisville, Penn Township and Slippery Rock Township were also funded by using block grant money as matching funds for grants from the state Department of Conservation and Natural Resources.

Water lines were replaced in Chicora last year and new sewer lateral lines connecting about 20 homes in Mercer Township homes to main service lines were installed a few years ago using block grant money, Leslie said.

New storm sewers were installed in Petrolia 15 years ago through the program.

“I’ve been here 19 years. I’ve seen the difference it has made in these municipalities to get the infrastructure done that they don’t have the money to do,” Leslie said.

Further, the Butler County Housing and Redevelopment Authority uses grants for the HOME program, which creates affordable housing for low-income residents, a low-income housing rehabilitation program and other programs including the housing choice voucher program.

Executive director Ed Mauk said the housing choice voucher program, formerly called the Section 8 program, is the authority’s biggest program.

“We subsidize rent for low-income families,” Mauk said, about the voucher program.

The housing rehabilitation program provides funding to bring houses into compliance with building codes.

He said he is aware of the proposed elimination of the program and closely monitors developments about the federal budget every day.

He said he feels it’s too soon to get worked up about it yet, but if enacted as proposed, terminating the program would have devastating impact on communities in the county.

“CDBG is not just housing. It’s how municipalities operate. You strip that money way, it would be devastating,” Mauk said. “It’s so dramatic; there’s no way to prepare for it.”

He said CDBG is multibillion dollar program, and it is unknown if the state would be able to create a program to replace it. He said he does not believe that could be done in a timely manner, considering that fiscal year 2026 beings Oct. 1 this year.

“It’s hard to fathom how it will shake out at the end of the day. I try not to get too excited until I see something a little more final,” Mauk said. “I’m very concerned, but there’s no way to prepare for the impact.”

Eagle assignment editor Tracy Leturgey contributed to this report.