{"database": "openregs", "table": "crs_reports", "rows": [["IF13221", "Community Development Block Grants for Disaster Recovery: A Primer", "2026-05-08T04:00:00Z", "2026-05-09T05:56:25Z", "Active", "Resources", "Joseph V. Jaroscak", null, "In response to some disasters, Congress has provided supplemental funding for long-term disaster recovery and other related purposes under the Community Development Block Grant (CDBG) program\u2019s statutory authority (42 U.S.C. \u00a7\u00a75301 et seq.). Administered by the Department of Housing and Urban Development (HUD), this assistance is commonly referred to as CDBG-DR funding. \nSince FY1993, Congress has appropriated, and HUD has allocated, more than $111 billion in CDBG-DR funds. Roughly $65 billion of this total has been provided since FY2016. During this period, Congress also began to provide dedicated supplemental CDBG appropriations for certain mitigation activities, which are included in the totals.\nOverview\nCDBG-DR funding is intended to support needs unmet by other forms of federal disaster assistance, including Federal Emergency Management Agency (FEMA) grants and Small Business Administration loans. Typically, Congress directs HUD to allocate CDBG-DR funds for use in the \u201cmost impacted and distressed areas\u201d in jurisdictions with major disaster declarations under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. \u00a7\u00a75121 et seq.; Stafford Act)\u2014see for example P.L. 118-158.\nCDBG-DR is not a program with its own standing authorization or regulations. Instead, CDBG-DR funds, generally, are subject to the conventional CDBG program\u2019s statutory authority and regulatory requirements. The text of CDBG-DR supplemental appropriations typically include specific statutory directives and authorize HUD to establish waivers and alternative requirements as circumstances may require, which can make each instance of CDBG-DR appropriations unique. \nGrants Management Process\nAlthough directives in appropriations acts and aspects of HUD\u2019s grant administration may vary, the CDBG-DR funding and disbursement cycle typically follows a common series of general steps governed by congressional requirements and overarching HUD regulations. The basic steps in the CDBG-DR funding and disbursement process are listed below:\nCongress provides funding through a supplemental appropriations act, which defines eligibility and may include specific guidelines for the use of funds;\nHUD sets allocation amounts and establishes rules for the use of funds provided in the corresponding CDBG-DR supplemental appropriations act;\nEligible grantees (i.e., states, localities, U.S. Territories, or federally recognized tribes) draft CDBG-DR action plans and certifications, engage in public participation, and submit the documents to HUD;\nHUD reviews and approves action plans and certifications, negotiates grant agreements, and obligates funds;\nGrantees implement action plans and expend CDBG-DR funds; and\nHUD monitors grantee program activities and expenditures.\n\nEligible Activities and Requirements\nBroadly, eligible uses in the conventional CDBG program\u2019s statute and regulations (42 U.S.C. \u00a75305 and 24 C.F.R. \u00a7570.201) establish the baseline of eligible CDBG-DR activities. Provisions in supplemental appropriations acts or HUD rulemaking could modify eligible activities and associated requirements.\nTypically, grantees need to demonstrate that a proposed CDBG-DR activity has a direct \u201ctie-back\u201d or connection to the disaster for which funds were provided. Additionally, CDBG-DR activities must meet one of the conventional CDBG program\u2019s three national objectives:\nto principally benefit low- and moderate-income (LMI) persons;\nto aid in the prevention or elimination of slums or blight; or\nto provide an urgent need for the purposes of health or safety.\nIn general, grantees are required to utilize 70% of their funds for activities that principally benefit LMI populations. In some cases, HUD has relaxed the LMI requirement to 50%, typically pursuant to authority provided by Congress in a supplemental appropriations act. For the purposes of CDBG-DR, LMI is defined as at or below 80% of the area median income.\nOversight Findings \nThe ad hoc nature of the CDBG-DR process, some argue, has allowed Congress and HUD to adapt grant requirements to the specific needs of affected communities. Some analysis indicates that it may have also contributed to coordination and planning challenges. \nThe Government Accountability Office (GAO) has reported instances of protracted CDBG-DR rulemaking periods, inconsistent administrative time frames, and funding delays. Some grantees have also expressed concern to GAO regarding the administrative burden of simultaneously managing multiple CDBG-DR grants with differing sets of requirements. Additionally, GAO has highlighted ongoing fraud risk associated with CDBG-DR funds.\nSome HUD Office of Inspector General (HUD-OIG) audits have identified potential deficiencies in HUD\u2019s grantee guidance, monitoring processes, and grantee data collection, which may pose risks related to improper payments and challenges with preventing or identifying waste, fraud, and abuse. \nHUD Administrative Reforms\nHUD has instituted some measures to standardize CDBG-DR processes within the current framework. For example, on January 8, 2025, HUD published a \u201cUniversal Notice\u201d in the Federal Register to standardize and clarify the CDBG-DR rulemaking process. According to HUD, the Universal Notice is a uniform rulemaking document designed to accompany an Allocation Announcement Notice (AAN) when Congress provides supplemental appropriations and rulemaking authority for CDBG-DR. The Universal Notice outlines waivers and alternative requirements for three key phases of the grants management process, carried out by CDBG-DR grantees: \nAction Plan development;\nfinancial certification and oversight of funds; and\nimplementation.\nHUD\u2019s stated intent in establishing a Universal Notice is to \u201cprovide grantees and the public with increased transparency, consistency, and more timely access to CDBG\u2013DR funds, helping to minimize program delays and accelerate recovery.\u201d\nThe first AAN subject to the Universal Notice requirements was published on January 16, 2025, and provided allocations for disasters occurring in 2023 and 2024 pursuant to P.L. 118-158. HUD amended the Universal Notice on March 19 and March 31, 2025. According to HUD, the amendments were intended to conform with several executive orders and a presidential memorandum issued between January 20 and February 19, 2025, on subjects pertaining to cost of living and diversity, equity, and inclusion practices. HUD also announced a 60-day extension for CDBG-DR grantees that were subject to the initial Universal Notice requirements.\nPrior to establishment of the Universal Notice, HUD took initial steps to standardize CDBG-DR processes by including a \u201cconsolidated notice\u201d as an appendix of allocation announcements in the Federal Register. HUD adopted this practice for disasters occurring in 2020, 2021, and 2022, as well as selected 2023 disasters. The consolidated notice\u2014and its accompanying guidance\u2014outlined uniform CDBG-DR processes and requirements for grantees covered by these allocations and rulemaking. \nRecent Proposed Legislation\nGAO has recommended congressional action on authorization of a federal unmet needs disaster recovery program. HUD\u2019s Congressional Budget Justifications (CBJs) for FY2023-FY2025 expressed support for congressional authorization of CDBG-DR. HUD\u2019s FY2026 and FY2027 CBJs did not include such language. \nIn the 119th Congress, some Members of Congress have proposed legislation that would authorize CDBG-DR within HUD or establish a similar new program to provide for unmet disaster recovery needs in another agency.\nReforming Disaster Recovery Act\nA version of a Reforming Disaster Recovery Act has been included in two housing-related legislative packages that were agreed to in the Senate during the 119th Congress (S.Amdt. 4308 and S. 2296 Division I, Title LV, Section 5505). The bill would formalize HUD\u2019s role in disaster response and recovery. Specifically, it would authorize CDBG-DR as a standing program, establish a dedicated fund for the program within the Treasury, and create the Office of Disaster Management and Resiliency within HUD\u2019S Office of the Secretary to oversee and coordinate the agency\u2019s disaster preparedness and response functions. \nNatural Disaster Recovery Program Act\nA Natural Disaster Recovery Program Act of 2025 (H.R. 316) would establish a dedicated fund in the Treasury and authorize FEMA to provide assistance for unmet disaster recovery needs of states and tribal governments, among other provisions. \nConsiderations for Congress\nPast congressional hearings on CDBG-DR have addressed HUD\u2019s role in the disaster recovery process. Topics have included the efficacy of CDBG-DR assistance and considerations pertaining to potential authorization.\nPermanently authorizing CDBG-DR would designate HUD as a principal disaster management agency, with a more direct and official role in disaster management. Although HUD does currently have disaster management responsibilities, including its administration of CDBG-DR, permanent authorization could formally broaden HUD\u2019s scope in this policy area. This could require further consideration on HUD\u2019s staffing and technical capacity to carry out potentially expanded and formalized functions pertaining to disaster mitigation, response, and recovery.\nIf Congress authorizes CDBG-DR or another form of unmet needs assistance into a standing disaster recovery and mitigation program, it would face consideration of what the best agency is to administer it. HUD or another economic development-focused agency may be a potential choice, depending on the priorities of the authorization legislation, or an agency with more regular disaster management responsibilities.", "https://www.congress.gov/crs_external_products/IF/PDF/IF13221/IF13221.1.pdf", "https://www.congress.gov/crs_external_products/IF/HTML/IF13221.html"]], "columns": ["id", "title", "publish_date", "update_date", "status", "content_type", "authors", "topics", "summary", "pdf_url", "html_url"], "primary_keys": ["id"], "primary_key_values": ["IF13221"], "units": {}, "query_ms": 0.5543759325519204, "source": "Federal Register API & Regulations.gov API", "source_url": "https://www.federalregister.gov/developers/api/v1", "license": "Public Domain (U.S. Government data)", "license_url": "https://www.regulations.gov/faq"}