1 1 (March 24, 2020)

handle is hein.crs/govcawz0001 and id is 1 raw text is: 









              Researh Sevice






Responding to the COVID-19 Outbreak with

Community Development Block Grant

(CDBG) Authorities



March 24, 2020

In response to the economic impact of the COVID-19 pandemic, some in Congress have suggested using
the Community Development Block Grant (CDBG) program as a vehicle for providing financial relief to
states and communities. Congress has regularly instituted a special variant of CDBG for long-term
disaster recovery, known as CDBG-Disaster Recovery (CDBG-DR). This Insight considers the potential
role of CDBG and CDBG-DR as economic development countermeasures to the coronavirus outbreak.
For more information on the health and epidemiological aspects of COVID-19, see CRS products R462 19
and IF11421.


About CDBG

CDBG is a flexible community and economic development program administered by the Department of
Housing and Urban Development (HUD) that provides formula-based block grant funding to entitlement
communities-broadly, cities with populations of 50,000 or greater, or urban counties of 200,000-
which makes up approximately 70% of CDBG spending, and to the states and territories, which sub-
allocate funds to non-entitlement communities. The primary goal of the CDBG program is the
development of viable urban communities, by providing decent housing and a suitable living environment
and expanding economic opportunities, principally for persons of low and moderate income.
As a condition for receiving funds, the program's authorizing statute requires states and local
governments to certify that proposed CDBG activities meet one of the program's three national
objectives. Eligible activities must:
   * principally benefit low- and moderate-income persons defined as families and individuals
       whose household incomes do not exceed 80% of a jurisdiction's median income;
   *   aid in the prevention or elimination of slums or blight; or


                                                            Congressional Research Service
                                                              https://crsreports.congress.gov
                                                                                IN11277


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