Community Development Block Grant (CDBG)
A major federal grant program administered by HUD that provides cities with funding for housing, infrastructure, and economic development in low- and moderate-income areas.
How It Works
CDBG is one of the longest-running federal programs for cities, created in 1974. Entitlement cities (generally those with 50,000+ population) receive annual formula allocations based on population, poverty rate, housing age, and growth lag. CDBG funds can be used for housing rehabilitation, public improvements, economic development, and social services — but at least 70% must benefit low- and moderate-income residents. Annual funding has declined significantly in real terms since the program's peak.
Related Terms
- Federal Grants — Funding from the federal government to cities for specific purposes — housing, transportation, public health, law enforcement, and environmental protection.
- Intergovernmental Revenue — Money a city receives from federal or state government through grants, shared taxes, or direct transfers.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.