Trends in CDBG Program Funding and Grantee Participation (CRS Report for Congress)
Release Date |
Sept. 19, 2024 |
Report Number |
IN12426 |
Report Type |
Insight |
Authors |
Joseph V. Jaroscak; Daniela E. Lacalle |
Source Agency |
Congressional Research Service |
Summary:
The Community Development Block Grant (CDBG) program was established under the Housing and
Community Development Act of 1974, P.L. 93-383. Administered by the U.S. Department of Housing
and Urban Development (HUD), the CDBG program provides flexible federal funding to states, localities,
and insular areas for purposes related to economic and community development.
Since the CDBG program’s inception, the number of jurisdictions eligible for direct CDBG allocations
has roughly doubled. During this same timeframe, annual CDBG funding levels have not increased in
proportion to the growth in grantee participation, nor with the rate of inflation. As described in recent
HUD analysis, “The CDBG program has significantly less purchasing power to service significantly more
people.” Some Members of Congress and HUD have considered options to ensure optimal targeting of
funds based on grantee need, and/or to address the apparent scarcity of CDBG funds relative to the
number of eligible grantees.