Reed Announces Additional $4.6 Million in CDBG Funds

Statement

In an effort to help communities combat the novel coronavirus (COVID-19) outbreak in Rhode Island, U.S. Senator Jack Reed, the Ranking Member of the Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD), today announced a new infusion of $4,682,119 through the Community Development Block Grant (CDBG) Program. This second tranche of CDBG funding brings the state's total CDBG funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to date to $14,560,434, with a third and final round expected in the coming months.

This additional CDBG funding announced today may be used to support a variety of pressing economic priorities and programs such as small-business grants and loans, job creation and retention, emergency rental assistance, homelessness prevention, and nutrition assistance.

"People and communities are struggling and CDBG funds help communities address areas of greatest need as a result of the COVID-19 pandemic. This additional federal funding will help provide direct investment to combat COVID-19, provide essential services, and promote economic recovery. I will continue working to deliver federal funds to meet the needs of our communities," said Senator Reed, who led efforts to include $5 billion for CDBG in the CARES Act.

Under the law, state and local governments may use CDBG funds to provide assistance to eligible citizens, small businesses, and nonprofits to help weather the impacts of the COVID-19 pandemic. To allow for greater flexibility to provide essential services at the local level, Reed also helped remove the traditional statutory cap that limits CDBG expenditures on public services to no more than 15 percent of a state or local government's allocation.

CDBG is administered by the U.S. Department of Housing and Urban Development (HUD).

Of the $5 billion set aside for CDBG through the CARES Act, the first $2 billion was allocated based on a formula for the federal fiscal year 2020. As a result, Cranston, East Providence, Pawtucket, Providence, Warwick, Woonsocket, and Statewide recipients received a total of nearly $9.9 million. This second tranche of funding was from a $1 billion pot and will be administered by the State Office of Housing and Community Development. The final $2 billion in CDBG funding from the CARES Act will be distributed to state and local governments with input from the HUD Secretary.

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