Sponsors (2)
The bill gives HUD and local governments greater flexibility and reduces HUD's statutory obligations, but does so at the risk of cutting funding and services for low-income people and community infrastructure, potentially shifting costs onto taxpayers and creating transition expenses for administrators.
Local and state governments (and HUD) can redirect resources and administrative focus away from Title I programs beginning Oct 1, 2025, giving them greater flexibility to reallocate funds and priorities.
The bill eliminates certain statutory grant authorities, reducing HUD's mandatory statutory obligations tied to Title I programs and potentially lowering federal administrative constraints.
Low-income individuals and renters — and the local governments and nonprofits that serve them — risk losing access to federal community development and housing grants and related community infrastructure funding.
State and local governments may need to replace lost federal funding with higher local taxes or increased borrowing, imposing indirect costs on taxpayers and middle-class families.
HUD and administering entities will face transition and administrative costs to revise program administration ahead of the Oct 1, 2025 effective date.
Based on analysis of 2 sections of legislative text.
Repeals major Title I provisions of the 1974 Housing and Community Development Act, removing statutory authority for CDBG programs effective October 1, 2025.
Official title: To amend the Housing and Community Development Act of 1974 to abolish certain grants for community development, and for other purposes.
Introduced February 7, 2025 by Tom McClintock · Last progress February 7, 2025
Repeals major portions of Title I of the Housing and Community Development Act of 1974 that authorize Community Development Block Grant (CDBG) programs and related grant authorities, eliminating those statutory grant programs effective October 1, 2025. The bill simply removes the listed statutory sections; it does not create replacement programs, appropriate funds, or add new requirements.