The City of Victoria could lose federal funding due to new proposed changes in population criteria

The changes could affect funding to transportation projects and community developments

VICTORIA, Texas – The United States Office of Management and Budget proposed six changes to the metropolitan and micropolitan areas.

Victoria and Goliad currently make up the Metropolitan Statistical Area of our region with a combined population of 99,762.

The first proposed change is increasing the minimum population for Metropolitan Statistical Areas from 50,000 to 100,000. This change would potentially cause a loss of funding for Victoria’s public transit and community housing development depending on federal program rules.

“They’re all federal funds but you have different federal agencies overseeing and dispersing those funds and that’s why it’s hard to say okay yes we’re gonna lose it all or it varies depending on how the program and the rules are established,” says Julie Fulgham, Director of Development Services.

Fulgham also says everything is uncertain right now and it’s possible that Victoria may not lose a lot of federal funding if the changes were to go into effect.

The program rules can decide whether funding stays the same or decreases.

For example: If Victoria is no longer identified as a Metropolitan Statistical Area, the United States Department of Housing & Urban Development could decide to continue to fund the same budget or decrease the budget for community housing development in the city.

The Victoria Economic Development Corporation has opposed the changes because it may negatively affect business recruitment to the city.

As of right now, these rules are just a proposal and until a final ruling is made, Victoria will remain as Metropolitan Statistical Area. The deadline to finalize the proposed ruling is by 2023.