Sponsors (3)
The bill shifts more HUD/CDBG resources and incentives toward faster‑growing jurisdictions and improves data-driven transparency and guidance to spur housing production, but it risks cutting funding for slower‑growth and structurally constrained communities, creating allocation volatility, administrative burdens, and political tensions.
Local governments with above‑median or rapid housing growth will receive larger CDBG/HUD allocations and prioritization, giving them more money to expand infrastructure, affordable housing, and local housing programs.
HUD must use improved, authoritative address and Census-derived unit counts and may shift calculation timing to align with Census data, producing more accurate and timely counts that should make allocations fairer and reduce mismatches.
State and local governments (and the public) will get clearer, public reporting of each jurisdiction's housing growth, bonus/penalty history, and comparative rankings, increasing transparency and accountability in how allocations are made.
Slow‑growth, smaller, or rural jurisdictions (and their low‑income residents) risk losing significant funding—including up to a 10% CDBG cut or reduced Section 106 access—even when they have persistent needs.
Jurisdictions face greater year‑to‑year volatility and budgeting uncertainty (and potential funding delays) because reallocations, shifted calculation periods, and report‑publication timing can change award amounts or postpone distributions.
HUD's growth metrics and reliance on quarterly windows or lagging Census/USPS data may misclassify places that recently changed rapidly, causing misdirected grants and disadvantaging small or fast‑changing jurisdictions.
Based on analysis of 6 sections of legislative text.
Changes how HUD reallocates existing CDBG (section 106) funds by awarding bonuses to jurisdictions with improved housing-unit growth and reducing allocations for lower-growth areas.
Official title: To provide for adjustments to community development block grant allocations based on improvements in housing growth rates.
Introduced December 2, 2025 by Lisa C. McClain · Last progress December 2, 2025
Adjusts how HUD distributes Community Development Block Grant (CDBG) funds so faster-growing metropolitan cities and urban counties receive bonuses from slower-growth jurisdictions. HUD will compute housing growth rates using Census address files, publish an annual report showing each jurisdiction’s growth improvement rate, notify recipients of their status, and provide guidance to reduce regulatory barriers; the new allocation rule starts the third full fiscal year after enactment and runs through FY2043. The law defines eligibility and exclusions, creates formulas to compute a housing growth improvement rate and bonuses, cuts allocations by 10% for jurisdictions below the median growth improvement rate (with some exclusions), and requires HUD and the Census Bureau to coordinate on address-count data and publish results before making allocations.