Community Services Block Grant
(CSBG)
Department of Health and Human Services1,000+ Community Action Agencies; 9–10 million individuals in 5.2 million households
What This Program Does
The Community Services Block Grant (CSBG) provides federal funding to a nationwide network of over 1,000 Community Action Agencies that help low-income Americans meet basic needs such as housing, employment, nutrition, and energy assistance. Established in 1981 as part of the Omnibus Budget Reconciliation Act (with roots in the 1964 Economic Opportunity Act), the program serves approximately 9 to 10 million individuals in about 5.2 million households each year.
Who Would Be Affected
The proposed cut would eliminate all $0.8 billion in federal funding for more than 1,000 Community Action Agencies operating in nearly every county in the United States. These agencies primarily serve low-income families, elderly individuals, people with disabilities, and others struggling with poverty. Rural communities, where Community Action Agencies are often among the few social service providers, could be especially hard hit.
What This Cut Would Mean
Without CSBG funding, many Community Action Agencies would lose a core source of operational support that they use to coordinate and deliver anti-poverty services, potentially forcing closures or significant service reductions. CSBG funds also help agencies leverage additional public and private dollars — studies estimate each CSBG dollar helps bring in several more dollars from other sources, meaning total losses could exceed the direct cut. The administration argues these agencies are ineffective and that anti-poverty services should be restructured, while independent analysts and nonprofit organizations warn that eliminating the program would leave significant gaps in the safety net, particularly in underserved areas with few alternative service providers.
Administration's Stated Rationale
“Community Action Agencies considered ineffective; anti-poverty services to be restructured.”