Changes How Housing Grant Money Is Split

HR6623-119 · Introduced Dec 11, 2025

Why it matters

Cities and counties could receive more or less block grant money depending on poverty, older housing, and crowding in their areas. Local programs for housing and community projects would be affected by the new split.

What it does

  • Changes the formula for dividing community development block grants among cities, urban counties, and states
  • Counts the poverty rate five times in the formula, more than any other factor
  • Counts housing built before 1950 that houses people in poverty three times
  • Authorizes $3.425 billion for fiscal 2026, adjusted yearly for inflation through 2029

In committee

Next: a committee vote

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About this bill

Would change the formula for splitting community development block grants among cities, counties, and states. Poverty would count most heavily, and the authorized amount for fiscal 2026 is $3.425 billion.

Community Development Block Grant Equity Act of 2025

AI draft

Perspectives

💬 The case for

Community development groups would likely say the new formula sends money to places with the greatest need. They may argue older, crowded housing deserves more weight.

💬 The case against

Some local governments would likely say the changes could cut their share of funds. They may argue the formula is too complex to predict budgets.

Sponsored by

Sponsor details for this federal bill are at the source link.

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