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Paulsen, McHenry Seek to Reform Law to Protect Funds for Low, Moderate Income Residents

Press Release

Location: Washington, DC

Representative Erik Paulsen (MN-03) and Representative Patrick McHenry (NC-10) today introduced the Ensuring Proper Community Investments Act, legislation that seeks to make sure Community Development Block Grants (CDBG) are used for their intended purpose: improving the lives of low and moderate-income residents. In recent years, there have been reports of municipalities selling their CDBGs to other localities for a fraction of their worth to skirt requirements associated with CDBG uses. The end result is a slush fund of general revenue with no restrictions, and a government grant program being abused. The Ensuring Proper Community Investments Act, will stop the sale or transfer of CDBG award money to make sure the money is getting to the areas that need it the most.

"In a time when millions of Americans are out of work or underemployed, and our national debt continues to grow faster than the entire size of our economy, finding ways to cut government waste and abuse is absolutely necessary," said Congressman Paulsen. "These funds are specifically intended to help the homeless and less fortunate, and this legislation ensures that municipalities follow the rules so these grants help those who are truly in need."

"Community Development Block Grants should be used to help the low and moderate income folks they're meant for, not to prop up affluent communities who don't need them," said Congressman McHenry. "This bill will cut waste and abuse while ensuring that assistance goes to those most in need."

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, currently serves on the House Ways and Means Committee and is co-chair of the Congressional Medical Technology Caucus.

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