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1 1 (April 6, 2020)

handle is hein.crs/govcuyr0001 and id is 1 raw text is: Researh Sevice Community Development Block Grants and the CARES Act April 6, 2020 The U.S. Department of Housing and Urban Development's (HUD's) Community Development Block Grant program (CDBG) can be employed by states and local units of government to support economic and community development efforts in response to the COVID- 19 pandemic. The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) includes $5 billion for the Community Development Fund, enabling additional HUD support for CDBG grantees. This Insight provides an overview of the conventional CDBG program, considers how CDBG funds may be used to support community and economic development efforts in response to the COVID- 19 pandemic, and discusses provisions in the CARES Act pertaining to CDBG. Community Development Block Grant Program Overview CDBG is a flexible program administered by HUD that provides formula-based block grant funding to states and eligible localities. CDBG authorities are regularly used to respond to unmet long-term recovery needs in disaster-affected areas. In some instances, Congress has enacted supplemental appropriations under CDBG authorities to provide additional resources for unmet needs of affected communities- typically, but not exclusively, in areas with federal emergency or disaster declarations under the Stafford Act-which have come to be known as CDBG Disaster Recovery, or CDBG-DR. CDBG Formula Allocation CDBG funds generally are allocated through two separate formula processes. Approximately 70% of the program funds are granted to general units of local government under the CDBG Entitlement Program. Eligible grantees in the entitlement program are (1) principal cities of Metropolitan Statistical Areas; (2) other metropolitan cities with populations of at least 50,000; and (3) qualified urban counties with populations of at least 200,000 (not including entitlement city populations). About 30% of CDBG program funds are granted to states based on a separate formula allocation, for disbursement to communities that do not qualify for entitlement funds. States have broad discretion in disbursing funds to nonentitlement communities. Congressional Research Service https://crsreports.congress.gov IN11315 CRS NS GHT Prpred For Meumbers and Comrm ttees of Conress ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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