Community Development Block Grant References 2025

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Cons of College Grants There are fewer grant options compared to scholarships because grants are mostly based on financial-need. Its possible to get more than one grant based on your financial-need, field of study, and other qualifiers. There are limited funds to provide and grants can be highly competitive.
Block grants mean cuts in funding for safety net programs. The proposal to convert SNAP into a block grant beginning in 2021 would have cut funding for SNAP by $125 billion, or almost 30%. The history of block grants also shows large declines in funding over time.
What is one of the biggest problems with federal block grants? There is a need for greater accountability in how the funds are actually spent by the states.
Critics of block grants argue that providing state and local government officials increased flexibility concerning the use of the programs funds reduces the ability of federal administrators and Congress to provide effective program oversight. For example, block grants have reporting requirements.
If CDBG funds are spent, but the project is not finished within a reasonable period of time, HUD will determine that no National Objective was met and will require that all funds expended be repaid out of non-federal dollars.

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The major problems with replacing entitlement programs with block grants include: No automatic response. When people or communities are most vulnerable economically, block grants dont respond to increased need. Capped and falling funding. Increased flexibility and lack of minimum standards.
The Community Development Block Grant (CDBG) Program provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.

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