CDBG Program History and Purpose
Enacted by Congress in 1974 under the Housing and Community Development Act and signed into
law by President Gerald Ford on August 22, 1974, the program officially turned 50 on August 22, 2024.
The Act consolidated eight federal categorical programs into one block grant – CDBG – and devolved
federal decision making for urban issues to local governments CDBG provides funding to communities
across the country to address infrastructure, economic development, housing, disaster recovery, and
other community needs. The program provides local communities with the flexibility to design and
implement strategies tailored to meet local needs and priorities.
Who Benefits?
Low- and moderate-income people are the direct program beneficiaries. States and entitlement
cities and counties receive direct program allocations. Small, rural communities receive assistance
through their state. Nonprofit organizations, contractors, and other local partner organizations serve
as program subrecipients to deliver local CDBG activities. State and local governments work with
their local program partners and harness input from the public to develop community development
programs that invest in low- and moderate- income people and neighborhoods. One of CDBG’s greatest
strengths is its ability to leverage other investments. As a flexible resource designed to accommodate
local needs, CDBG often serves to match other sources of public and private funds. Program resources
also help projects and services become reality providing gap funding to meet budget needs.
