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1 [1] (May 8, 2026)

handle is hein.crs/goveujj0001 and id is 1 raw text is: Congressional Research Service Informing the legislative debate since 1914 May 8, 2026 Community Development Block Grants for Disaster Recovery: A Primer In response to some disasters, Congress has provided supplemental funding for long-term disaster recovery and other related purposes under the Community Development Block Grant (CDBG) program's statutory authority (42 U.S.C. §§5301 et seq.). Administered by the Department of Housing and Urban Development (HUD), this assistance is commonly referred to as CDBG-DR funding. Since FY1993, Congress has appropriated, and HUD has allocated, more than $111 billion in CDBG-DR funds. Roughly $65 billion of this total has been provided since FY2016. During this period, Congress also began to provide dedicated supplemental CDBG appropriations for certain mitigation activities, which are included in the totals. Overview CDBG-DR funding is intended to support needs unmet by other forms of federal disaster assistance, including Federal Emergency Management Agency (FEMA) grants and Small Business Administration loans. Typically, Congress directs HUD to allocate CDBG-DR funds for use in the most impacted and distressed areas in jurisdictions with major disaster declarations under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. §§5121 et seq.; Stafford Act)-see for example P.L. 118-158. CDBG-DR is not a program with its own standing authorization or regulations. Instead, CDBG-DR funds, generally, are subject to the conventional CDBG program's statutory authority and regulatory requirements. The text of CDBG-DR supplemental appropriations typically include specific statutory directives and authorize HUD to establish waivers and alternative requirements as circumstances may require, which can make each instance of CDBG-DR appropriations unique. Grants Management Process Although directives in appropriations acts and aspects of HUD's grant administration may vary, the CDBG-DR funding and disbursement cycle typically follows a common series of general steps governed by congressional requirements and overarching HUD regulations. The basic steps in the CDBG-DR funding and disbursement process are listed below: 1. Congress provides funding through a supplemental appropriations act, which defines eligibility and may include specific guidelines for the use of funds; 2. HUD sets allocation amounts and establishes rules for the use of funds provided in the corresponding CDBG-DR supplemental appropriations act; 3. Eligible grantees (i.e., states, localities, U.S. Territories, or federally recognized tribes) draft CDBG-DR action plans and certifications, engage in public participation, and submit the documents to HUD; 4. HUD reviews and approves action plans and certifications, negotiates grant agreements, and obligates funds; 5. Grantees implement action plans and expend CDBG-DR funds; and 6. HUD monitors grantee program activities and expenditures. ble Actvties and Requirements Broadly, eligible uses in the conventional CDBG program's statute and regulations (42 U.S.C. §5305 and 24 C.F.R. §570.201) establish the baseline of eligible CDBG-DR activities. Provisions in supplemental appropriations acts or HUD rulemaking could modify eligible activities and associated requirements. Typically, grantees need to demonstrate that a proposed CDBG-DR activity has a direct tie-back or connection to the disaster for which funds were provided. Additionally, CDBG-DR activities must meet one of the conventional CDBG program's three national objectives: 1. to principally benefit low- and moderate- income (LMI) persons; 2. to aid in the prevention or elimination of slums or blight; or 3. to provide an urgent need for the purposes of health or safety. In general, grantees are required to utilize 70% of their funds for activities that principally benefit LMI populations. In some cases, HUD has relaxed the LMI requirement to 50%, typically pursuant to authority provided by Congress in a supplemental appropriations act. For the purposes of CDBG-DR, LMI is defined as at or below 80% of the area median income. Oversight Findings The ad hoc nature of the CDBG-DR process, some argue, has allowed Congress and HUD to adapt grant requirements to the specific needs of affected communities. Some analysis indicates that it may have also contributed to coordination and planning challenges.