When Barack Obama ran for president in 2008, he vowed to pour resources into American cities via the Community Development Block Grant program, a remnant of 1970s urban policy. Obama called CDBG an “important program” and praised it for providing housing and “creating jobs for low- and moderate-income people and places.” How ironic, then, that funding for CDBG has withered under President Obama. With the nation facing budget deficits as far as the eye can see, we may finally be witnessing the collapse of a decades-old program that, despite the president’s faith in it, is woefully ineffective. CDBG emerged from...