Urge your members of Congress to increase funding for the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program to $4.2 billion as Congress considers funding for FY 2022. CDBG, funded through the Transportation, Housing and Urban Development (THUD) appropriations bill, has been drastically reduced since FY 2010, having been cut by over half a billion dollars.
The CDBG program was enacted in 1974 to provide block grant funding for community development programs. The program assists urban, suburban and rural communities to improve housing and living conditions and expand economic opportunities for low- and moderate-income persons. CDBG helps create jobs through the expansion and retention of businesses and is an important tool for helping local governments tackle serious challenges facing our communities. Counties use the flexibility of CDBG funds to partner with the private and non-profit sectors to develop and upgrade local housing, water, infrastructure and human services programs. Counties rely on the flexibility of CDBG funds to meet each community’s particular development needs.
The CDBG program provides annual grants on a formula basis to over 1,200 metropolitan city and county governments and to state governments. There are 214 counties that receive grants directly. These “entitlement” cities and counties receive 70 percent of CDBG funds, while states receive 30 percent. “Non-entitlement” communities, such as rural counties, must compete for funding via the state formula allocation. HUD determines the amount of each grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas.
Currently, CDBG is funded at $3.45 billion under FY 2021 appropriations, an increase of $50 million over the FY 2020 level. NACo members are encouraged to contact their members of Congress to support $4.2 billion in funding for CDBG in the FY 2022 appropriations process.
KEY TALKING POINTS
Funding for the CDBG program should be increased to $4.2 billion in FY 2022. The CDBG program has faced drastic cuts in recent years, falling over half a billion dollars since FY 2010. CDBG was funded at $3.45 billion in the FY 2021 appropriations bill.
CDBG funding cuts will hurt local job creation and community development investments.
Counties utilize the flexibility of CDBG funds to support projects that meet their local priorities in addressing community and economic development, housing, water and infrastructure and human service needs.
The CDBG program provides vital resources for state and local governments to make investments to support economic development and improve community conditions.
According to HUD, for every $1 of CDBG funds, $3.50 is leveraged in non-CDBG funds. Over the last decade, CDBG has created or helped retain 401,992 economic development-related jobs.
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