Sponsors (3)
This bill redirects federal community development funds and reporting toward jurisdictions demonstrating recent housing unit growth—boosting resources and incentives for faster-growing areas and improving data-driven allocation—while creating cuts, instability, and added administrative and equity concerns for slower-growth, rural, or legally constrained jurisdictions.
Local governments in faster-growing jurisdictions will receive larger CDBG awards and be prioritized for HUD block grants, increasing funds available for local housing, infrastructure, and community projects.
Local governments will get more accurate and up-to-date housing unit counts because HUD must use Census MAF-derived address files and current block boundaries, which should improve fairness of allocations tied to unit counts.
State and local governments (and the public) will have clearer, timely transparency on jurisdictions' growth performance, bonus/penalty status, and HUD reporting, increasing accountability and creating incentives to boost housing production.
Local governments with below-median housing growth will face up to a 10% cut in CDBG funding, reducing resources for low-income services, housing programs, and community supports.
Smaller, slower-growth, and rural communities may lose funding despite persistent need, worsening service gaps and deepening geographic disparities in housing and social services.
Year-to-year reallocations (up to 10%) tied to recent unit counts create budgeting unpredictability for local governments, complicating planning for housing and social service programs.
Based on analysis of 6 sections of legislative text.
Reallocates HUD CDBG (section 106) funds using a housing growth improvement metric, giving bonuses to faster-growing jurisdictions and cutting allocations for lower-growth jurisdictions.
Adjusts how HUD distributes Community Development Block Grant (CDBG) funds to metropolitan cities and urban counties by tying annual allocations to each jurisdiction’s recent housing growth trends. Faster-growing places receive pro rata bonuses funded by reductions to lower-growth places; jurisdictions with below-median growth (excluding certain outliers) have their allocation cut by 10% for that year. Sets rules and data sources for counting housing units, defines eligibility and exclusions (for example, areas with low rents/home values, high vacancy, recent major disasters, or lacking zoning authority), requires HUD to publish an annual report before making allocations, and directs HUD to notify recipients and provide guidance on reducing regulatory barriers. The new allocation formula takes effect in the third full fiscal year after enactment and runs through FY2043, with immediate reporting and notification requirements for HUD after enactment.
Introduced December 2, 2025 by Lisa C. McClain · Last progress December 2, 2025