Sponsors (3)
The bill reallocates and targets CDBG and related HUD resources toward jurisdictions showing recent housing growth—improving targeting, data accuracy, transparency, and incentives to build—but does so at the cost of reduced funding and greater administrative, equity, and classification risks for slower-growth, rural, and legally constrained jurisdictions.
Local governments in faster-growing housing markets (primarily cities/counties with above-median unit growth) will receive larger CDBG awards and priority for HUD block grants, increasing funds available for housing, infrastructure, and community projects in high-demand areas.
HUD must use authoritative address and updated Census-derived counts and can align calculation timing, producing more accurate housing unit counts and reducing mismatches between data and on-the-ground housing, which should improve fairness of allocations tied to unit counts.
The bill increases transparency and accountability by publicly reporting each jurisdiction's growth performance and bonus/penalty status before allocations, which can make allocation decisions more predictable and incentivize jurisdictions to improve housing production.
Local governments with below-median housing growth face an automatic reallocation that can cut their CDBG funding by up to 10%, reducing monies for low-income services, housing programs, and community needs in those places.
Smaller or slow-growth rural communities and persistently distressed jurisdictions risk losing funding and seeing service gaps widen, because tying allocations to recent unit counts can favor larger, faster-growing jurisdictions and entrench disparities.
Using HUD-calculated growth metrics based on specific quarterly windows and allowing shifts in calculation periods risks misclassifying jurisdictions that have recent rapid changes, delaying or misdirecting grant allocations and creating budgeting uncertainty.
Based on analysis of 6 sections of legislative text.
Ties a part of HUD CDBG (section 106) formula allocations to recent housing unit growth, giving bonuses to higher-growth eligible jurisdictions and reducing allocations for lower-growth ones.
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
Changes how HUD distributes annual Community Development Block Grant (CDBG) formula funds to metropolitan cities and urban counties by tying part of each jurisdiction’s section 106 allocation to recent housing unit growth. The bill defines statistical growth measures, sets eligibility and exclusion rules, requires HUD to recalculate allocations so faster-growing jurisdictions receive bonuses funded by reductions to lower-growth jurisdictions, and phases in the formula beginning the third full fiscal year after enactment through FY2043. Requires HUD and the Census Bureau to use address-based housing unit counts at the Census block level, publish an annual report showing each eligible jurisdiction’s growth metrics and allocation changes, and notify recipients of their growth status and best-practice guidance to reduce regulatory barriers to housing supply.