Sponsors (3)
The bill reallocates and targets HUD CDBG Section 106 funds using more current, block-level housing growth metrics to reward fast-growing jurisdictions and encourage pro-housing reforms—but in doing so it shifts money away from slower-growing, disaster-affected, or atypical jurisdictions, adds administrative burdens, and risks incentivizing quantity over affordability.
Local governments in faster-growing metros (and the renters/homebuyers who live there) will receive prioritized and larger CDBG Section 106 grants via a growth-based bonus, increasing federal community development funds for high-growth areas.
HUD allocations will be tied to more current and granular housing-unit counts (Q3 prior-year counts and Census Master Address File at block level), making funding distributions more accurate and responsive to recent housing stock changes.
State and local governments (and community stakeholders) will get advance publication of growth data and allocation adjustments before final allocations, enabling better planning, transparency, and accountability around funding decisions.
Local governments with below-median housing growth will lose 10% of their Section 106 CDBG allocation for the year, directly reducing funds for housing and community services in those places.
Smaller, slower-growing, rural, or low-income jurisdictions (and the residents who rely on local services) are likely to be disproportionately harmed by cuts, worsening service gaps and infrastructure shortfalls.
The bill's eligibility and prioritization rules (temporary exclusion for recent disaster-affected jurisdictions, exclusion for areas with higher-than-national vacancy rates, and exclusion of jurisdictions lacking zoning/permitting authority) can withhold funds from communities with genuine needs.
Based on analysis of 6 sections of legislative text.
Redistributes annual CDBG section 106 allocations to reward jurisdictions with improved or very high housing growth and reduce allocations by 10% for below-median growth areas.
Introduced December 2, 2025 by Lisa C. McClain · Last progress December 2, 2025
Adjusts how HUD distributes Community Development Block Grant (CDBG) section 106 funds by tying annual allocations to measured changes in local housing-unit growth. Jurisdictions with improved or very high housing growth receive bonus shares drawn from reductions taken from below-median growth jurisdictions; jurisdictions below the median lose 10% of their section 106 allocation. The bill directs HUD to use Census address-count products (with data from the Census Bureau and USPS) to calculate housing-unit growth rates and a “housing growth improvement rate,” publish an annual report before allocations, notify eligible jurisdictions within 60 days of enactment with guidance, and implement the allocation adjustments beginning the third full fiscal year after enactment through fiscal year 2043.