On May 11, HUD announced the allocation of $1 billion of CARES Act funding through the Community Development Block Grant (CDBG) program. To date, HUD has allocated over $3 billion funding to communities to help them combat coronavirus and alleviate economic hardship through funding from the CARES Act.
The CARES Act CDBG allocation has been distributed to communities using a formula that focuses on public health needs, risk of transmission of coronavirus, rate of coronavirus cases, and economic disruption. The formula uses data on low-income elderly and poor children to target to places with higher public health risks. The formula also uses recent unemployment insurance data to ensure funding is provided for states that are hardest hit. Places with that have higher COVID-19 cases than the national average receive a slightly higher share of funding, although every U.S. state and Insular Area will receive a portion of these funds. Allocations can be found here.
Grantees may select from more than 25 eligible CDBG activities to shape their local programs including:
- Public services to prevent, prepare for, and respond to the coronavirus (such as providing food and health services for low-income elderly persons and children);
- Small business assistance or emergency housing payments for entities and families impacts by economic and housing market disruptions; or
- Acquisition and rehabilitation of structures for health facilities, food banks, or public improvements needed to support community coronavirus response, preparation, or prevention.