	Introduction

The Community Development Block Grant (CDBG) program, administered by the Department of Housing and Urban Development (HUD), was first authorized by Title I of the Housing and Community Development Act (HCDA) of 1974, P.L. 93-383 . During the program's 40-year existence, Congress has allocated approximately $138 billion to assist state and local governments in undertaking housing, economic development, neighborhood revitalization, and other community development activities principally benefitting low- and moderate-income persons. In addition to its annual appropriations, Congress also has used the program's framework to provide additional, supplemental, and special appropriations to assist states and communities in responding to various economic crises and manmade and natural disasters. This report is a review of the CDF account's funding history from FY2000 to FY2013; as well as current FY2014 funding. It includes a discussion of the three primary components of the CDF account: 
CDBG formula grants; CDBG-related set-asides and earmarks; and CDBG-linked supplemental and special appropriations. From FY2000 to FY2014, total appropriations for the CDF account—excluding supplemental appropriations for disaster relief, mortgage foreclosures (NSP), and economic recovery (ARRA)—fluctuated between a high of $5.112 billion in FY2001 and a low of $3.008 billion in FY2012 (see Table 2 ). As noted in Table 3 , during the period from FY2000 to FY2013, the average grant amount allocated to CDBG entitlement communities declined by 43.7% from a high of $3 million in FY2001 and FY2002 to a low of $1.7 million in FY2012. The decline in the average grant amount is both a function of lower funding levels and an increase in the number of entitlement communities as more cities and counties achieve the population threshold necessary to be designated an entitlement community. Short of appropriating additional funds that would mitigate both the impact of inflation and the increasing number of eligible communities, Congress may consider a number of options intended to address the decline in average CDBG formula allocations. Some set-asides included in the account are intended to complement the activities of the larger formula grant program (see Appendix A for a full list of set-asides funded under the CDF account). From FY2000 to FY2013, the number and appropriations for set-aside programs included in the CDF account have fluctuated significantly. In FY2001 Congress appropriated $713 million for CDF set-asides, with earmarks under the Economic Development Initiative (EDI) and Neighborhood Initiative (NI) programs accounting for 56% of this total. The average CDBG-formula allocation for FY013 was 37.9% less than the average allocation in FY2000. For the period from FY2000 to FY2013, the number of jurisdictions that received a direct allocation as CDBG entitlement communities increased by 171, from 1,012 to 1,183.
The Community Development Block Grant (CDBG) program, administered by the Department of Housing and Urban Development (HUD), under the Community Development Fund (CDF) account, was first authorized by Title I of the Housing and Community Development Act (HCDA) of 1974, P.L. 93-383. During the program's nearly 40-year existence, Congress has allocated approximately $138 billion to help state and local governments undertake housing, economic development, neighborhood revitalization, and other community development activities. In addition to its annual appropriations, Congress, as events have warranted, has used the program's framework to provide supplemental and special appropriations to assist states and communities in responding to various economic crises and manmade and natural disasters.
This report is a review of the CDF account's funding history from FY2000 to FY2013, as well as current funding in FY2014. It includes a discussion of the three primary components of the CDF account: (1) CDBG formula grants; (2) CDBG-related set-asides and earmarks; and (3) CDBG-linked supplemental and special appropriations. It is intended to provide recent historical background as the 113th Congress considers CDF funding levels and composition. For information on CDF appropriation legislation considered during the 113th Congress, the reader should consult CRS Report Community Development Block Grant Funding Issues in the 113th Congress.
From FY2000 to FY2014, total appropriations for the CDF account—excluding special and supplemental appropriations for disasters, mortgage foreclosures, and economic recovery—fluctuated between a high of $5.112 billion in FY2001 and a low of $3.008 billion in FY2012. During this period the average grant amount allocated to CDBG entitlement communities (typically metropolitan-based cities and counties) declined by 43.7% from a high of $3 million in FY2002 to a low of $1.7 million in FY2012. The decline in the average grant amount is both a function of fewer dollars appropriated and an increase in the number of entitlement communities as more cities and counties achieve the population threshold necessary to be designated an entitlement community. From FY2000 to FY2013, the number of jurisdictions receiving a direct allocation as CDBG entitlement communities increased by 171 (16.9%), from 1,012 to 1,183, while the average allocation for entitlement communities declined by 37.9%.
Short of appropriating additional funds, Congress may consider a number of options intended to address the decline in average CDBG formula allocations. These may include (1) increasing the population threshold for eligibility as a CDBG entitlement community, or (2) encouraging communities receiving less than a designated minimum allocation to enter into cooperative agreements with the urban county in which they are located.
From FY2000 to FY2014, both the number of and appropriations for set-aside programs included in the CDF account have fluctuated significantly. In FY2001 Congress appropriated $713 million for CDF set-asides, with earmarks under the Economic Development Initiative (EDI) and Neighborhood Initiative (NI) programs accounting for 56% of this total. By FY2013 CDBG-linked set-asides reached a low for the period of $57 million as other national priorities have supplanted the programs funded under the account, or those activities have been transferred to other accounts or agencies.