Sponsors (2)
The bill reduces HUD's statutory Title I obligations and gives federal and local governments flexibility to reallocate resources, but it risks cutting federal community development and housing support that low-income people and local projects rely on, potentially shifting costs to taxpayers and creating short-term transition expenses for administering agencies.
State and local governments and HUD can redirect resources and administrative focus away from Title I programs and reduce HUD's statutory grant obligations, providing greater flexibility and simplifying administration.
Low-income individuals, renters, local governments, and nonprofits could lose access to federal community development and housing grants and the infrastructure and community projects those grants support.
Taxpayers, including middle-class families, could face higher local taxes or increased borrowing if state or local governments must replace lost federal funding.
HUD and administering entities will need to revise program administration and may incur transition and implementation costs prior to the October 1, 2025 effective date.
Based on analysis of 2 sections of legislative text.
Repeals the statutory authorities that create and authorize Community Development Block Grant programs, eliminating those grant authorities effective Oct 1, 2025.
Introduced February 7, 2025 by Tom McClintock · Last progress February 7, 2025
Repeals key statutory authorities that create and authorize Community Development Block Grant (CDBG) programs, eliminating those federal grant authorities as of October 1, 2025. The change removes the statutory basis for a set of housing and community development grants that have funded local housing rehab, infrastructure, public services, and economic development activities for decades.