Community Development Block Grant Equity Act of 2025
Summary
The Community Development Block Grant Equity Act of 2025 (H.R. 6623) proposes amendments to the Housing and Community Development Act of 1974. The bill aims to revise the formula for allocating Community Development Block Grant (CDBG) funds to metropolitan cities, urban counties, and states. It adjusts the factors considered in the allocation formula, placing greater emphasis on poverty rates and housing conditions.
Expected Effects
The primary effect of this bill would be a redistribution of CDBG funds. Areas with higher poverty rates, a greater proportion of female-headed households with children, older housing stock occupied by impoverished households, and housing overcrowding are likely to receive increased funding.
Potential Benefits
- Increased funding for areas with high poverty rates.
- More resources directed towards communities with older housing stock.
- Potential for improved housing conditions in disadvantaged areas.
- Greater support for families in poverty, particularly female-headed households.
- More equitable distribution of resources based on need.
Most Benefited Areas:
Potential Disadvantages
- Potential reduction in funding for areas that do not meet the revised criteria.
- Increased administrative burden associated with implementing the new formula.
- Possible political challenges in gaining support for a redistribution of funds.
- May not address the root causes of poverty and housing issues.
- Reliance on potentially outdated data to determine allocation.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble). It also relates to Congress's power to tax and spend for the general welfare (Article I, Section 8). The bill does not appear to infringe on any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).