The Community Development Block Grant Equity Act of 2025 changes how the federal government distributes community development funding to cities, counties, and states. Currently, these grants are allocated based on a complex formula, but this bill revises that formula to emphasize four key factors: poverty rates, female-headed households with children, older housing in poor condition, and overcrowded housing. The bill weighs poverty rates and older housing as more important factors in determining funding allocations. The legislation authorizes $3.425 billion for fiscal year 2026 and continues funding through 2029, with automatic annual adjustments for inflation. This change primarily affects metropolitan cities, urban counties, and state governments that receive Community Development Block Grants to fund affordable housing, infrastructure, and neighborhood revitalization projects.
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