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1 1 (October 16, 2020)

handle is hein.crs/govdcjd0001 and id is 1 raw text is: SConr essional Research Servik CDBG-CV Formula Allocation Methods October 16, 2020 The Community Development Block Grant (CDBG) program is a primary source of flexible federal funding for state and local governments to use for economic and community development. It has also become a primary tool for the federal government to direct long-term recovery funding to states and localities in response to disasters and emergencies, including, most recently, the COVID-19 public health emergency. On March 27, 2020, Congress passed, and the President signed, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), which included $5 billion for CDBG. This funding was intended to prevent, prepare for, and respond to coronavirus. The law directed HUD to allocate the supplemental CDBG funds (CDBG-CV) in three tranches, each with a different formula allocation method, at separate stages in the national response to the COVID-19 pandemic. For more information on CDBG supplemental appropriations in the CARES Act, see CRS Insight IN 11315, Community Development Block Grants and the CARES Act, by Joseph V. Jaroscak. CDBG-CV Allocations First Tranche Of the $5 billion appropriated for CDBG-CV, the CARES Act required an initial allocation of $2 billion consistent with the existing statutory distribution formula (42 U.S.C. §5306). It directed HUD to allocate these supplemental funds to CDBG grantees-including eligible local governments, states, and insular areas-proportional to their conventional FY2020 CDBG allocation. HUD published allocation amounts (CDBG-CV1) for the first tranche of CDBG-CV funds in April 2020. Second Tranche The act directed HUD to allocate $1 billion of the total appropriation to states and insular areas outside of the standard formula, to target need within their areas of jurisdiction. HUD announced allocation amounts and published the methodology for this second tranche of funds on May 11, 2020. The allocation for the second tranche of CDBG-CV funds considered the following factors: count of low-income elderly (50% weight); count of children in poverty (10% weight); and Congressional Research Service https://crsreports.congress. gov IN11523 CRS ENSGHT Prepared for Members ard Comm :tees Congmss ----------------------------------------------------------------- ----------