Senate Passes Measure To Provide More Flexibility To CDBG Disaster Recovery Funds

Press Release

The United States Senate today passed an amendment cosponsored by Senator Tom Harkin (D-IA) that would allow cities and towns impacted by natural disasters in 2008 more flexibility in using Community Development Block Grant (CDBG) disaster recovery funds. CDBG funds can be used for disaster related housing, infrastructure and other restoration of damage as well as economic revitalization of impacted communities. Harkin joined with Sen. Mary Landrieu (D-LA) to offer this amendment to the FY 2010 Transportation, Housing and Urban Development, and Related Agencies Appropriations Act.

Historically, CDBG disaster funds have also been used to match other federal disaster dollars such as FEMA, Army Corps of Engineers and Economic Development Administration funding. The FY 2009 CDBG disaster funding did not allow the matching of federal funds creating a major problem for states and significantly flood impacted cities.

"Iowa cities and towns hit with the 2008 floods and tornadoes that were already strapped for cash were dealt an additional blow as they searched to find ways to match federal assistance," said Harkin. "This amendment will allow localities to match their federal support with CDBG funds so that states, cities and towns can afford the matching requirements. This is the least we can do to aid in the recovery effort and that's why I will continue to work to have this provision included in the final version of the bill that will be sent to the President."

Harkin led an effort to allocate $798 million in FY 09 CDBG dollars to states impacted by 2008 disasters in the continuing resolution that passed on September 30, 2008 that contained this limitation.

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