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Block Grants

Federal Funding Primer: Block Grants

A block grant is a form of flexible funding provided to states, territories, tribes, or local governments to use for broad purposes, with states, territories, tribes, and localities determining specific programs or initiatives.

Click a link below to learn more about a specific block grant, or peruse the whole page.

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Community Development Block Grant

Department: U.S. Department of Housing and Urban Development (HUD)
Agency: Office of Community Planning and Development

Overview

The Community Development Block Grant (CDBG) provides annual grants to states, cities, and counties to support the development of viable communities. The primary goals of the program are to provide decent housing, a suitable living environment, and expanded economic opportunities, particularly for individuals with low and moderate incomes. The flexibility of CDBG allows local governments to design and implement a wide range of activities that address specific community needs.

While the bulk of CDBG funds are devoted to physical improvements and infrastructure projects, up to 15% of funds can be spent on public services aimed at improving quality of life for community members.

Eligible Services

States and local governments have significant flexibility in determining how to allocate their CDBG funds, provided that at least 70% of the funds are used to benefit individuals with low and moderate incomes. Some services and activities funded by CDBG include:

  • Housing Rehabilitation and Development: Repairing, rehabilitating, or constructing affordable housing units to improve living conditions for residents with low and moderate incomes
  • Public Services: Funding services such as childcare, health care, senior services, and support for individuals with disabilities to ensure access to essential community resources
  • Economic Development Initiatives: Supporting small businesses, job training programs, and other economic activities that create jobs and stimulate economic growth in underserved areas
  • Public Facilities and Infrastructure: Developing or upgrading essential community infrastructure, such as water and sewer systems, streets, and community centers, to improve the quality of life in neighborhoods

How Funds are Distributed

CDBG funds are allocated to states and local governments on the basis of a formula that considers factors such as population, poverty levels, and housing conditions. Larger cities and urban counties, known as entitlement communities, receive funds directly from HUD, while smaller cities and rural areas receive funds through their state governments.

Every three to five years, each CDBG recipient must develop a Consolidated Plan that outlines how they will use the funds to meet community needs and comply with the program’s objectives. Kinship service providers can elevate the need for affordable tailored housing for grandfamilies during the process of developing this plan. This plan must include:

  • Needs Assessment: Analysis of the community’s housing, economic, and social service needs
  • Market Analysis: Overview of housing market conditions, availability of public and assisted housing, and demographic trends
  • Strategic Plan: A five-year strategy that outlines how the jurisdiction will use CDBG funds, along with other federal, state, and local resources, to meet identified needs
  • Annual Action Plan: A yearly update that details specific projects and activities the jurisdiction will undertake during the program year to implement the strategic plan

In addition to the Consolidated Plan, jurisdictions are required to produce a Citizen Participation Plan (usually updated along with the Consolidated Plan). The Citizen Participation Plan is designed to ensure that the public, especially residents with low and moderate incomes, have a meaningful role in the planning and implementation of community development activities. This plan outlines how a jurisdiction will engage with the community throughout the development of the Consolidated Plan and Annual Action Plan, as well as future amendments to either plan. It includes specific procedures for public hearings, public comment periods, and consultations with local organizations and stakeholders. The goal is to foster transparency, gather diverse perspectives, and ensure that community needs are accurately reflected and addressed in the use of CDBG funds. This citizen engagement process provides a critical moment for kin caregivers and their families to provide input on the need for affordable tailored housing for grandfamilies. Only about 20 such developments exist around the country, and many communities want and need this type of housing.

Once states and local governments receive CDBG funds, they distribute these funds to eligible community-based organizations and other entities through a competitive or discretionary process. This generally includes issuing a request for proposals or notice of funding availability to inform organizations about the availability of CDBG funds for specific projects or purposes.

Where to Find More Information

For more information about the Community Development Block Grant (CDBG) Program, interested individuals and entities should look to:

  • U.S. Department of Housing and Urban Development (HUD): Detailed information, relevant guidance, and up-to-date contact information is available at hud.gov.
  • HUD Exchange – CDBG Resources: Resource hub offering tools, webinars, technical assistance, and more at hudexchange.info/programs/cdbg/.
  • State and Local Grantees: Contact information for state and local CDBG grantees is available at hudexchange.info/grantees/contacts/.

Example

Clayton County, Georgia utilized $22,000 of CDBG funds to help the local Senior Services Agency, the Shelnutt Intergenerational Center, offer a free summer day camp for children being raised by grandparents. At Camp Kinship, children 5 to 14 engage in camp activities, visits to the local library, and field trips. The program provides respite for the kin caregivers and opportunities for children they might not otherwise have been able to afford.

Community Mental Health Services Block Grant

Department: U.S. Department of Health and Human Services (HHS)
Agency: Substance Abuse and Mental Health Services Administration (SAMHSA)

Overview

The Community Mental Health Services Block Grant (MHBG) provides funds to states and territories to develop and maintain comprehensive community mental health services. Funds for the program are allocated directly based on a set formula, and states and territories must use the funds to support existing mental health services or to create new services that meet the needs of the two target populations, individuals with serious mental illnesses (SMI) and children with serious emotional disturbances (SED). The goals of MHBG are to improve access to high-quality mental health services; promote community-based care; reduce health disparities; and support early intervention, prevention, recovery, and resilience.

Eligible Services

The MHBG funds a broad array of services to support individuals with SMI and children with SED. While the individual services available in a given community will be detailed in the state plan as determined through a needs assessment, some eligible uses of MHBG are:

  • Outpatient Treatment Services: Individual, group, and family therapy; medication management and psychiatric services; and case management and care coordination
  • Peer Support and Family Support Services: Peer-run services and peer support groups, family education and support programs, training for peer specialists and family support providers
  • Crisis Intervention Services: 24/7 crisis hotlines and helplines, mobile crisis teams, and crisis stabilization units
  • Specialized Services for Targeted Populations: Services for children and adolescents with SED, including supporting caregivers with training to deliver therapeutic foster care, case management, and post-permanency services
  • Respite Care: In-home and emergency respite care, training and support for respite care providers, and development of respite care programs
  • Telehealth Services: Remote mental health services through telehealth platforms for children with SED who reside in rural areas or who have challenges with mobility or transportation
  • Integrated Primary and Behavioral Health Care: Services that integrate mental health care with primary health care and collaborative care models that involve coordination between mental health professionals and primary care providers
  • Prevention and Early Intervention Services: School-based mental health services, community education and outreach programs, and screening and early identification of mental health conditions
  • Supportive Services: Assistance with transportation to and from mental health appointments, help with obtaining and maintaining benefits and entitlements, assistance with daily living skills and activities
  • Training and Workforce Development: Training for mental health professionals on evidence-based practices and continuing education and professional development opportunities

The flexibility of MHBG funds allows states and territories to tailor their services to meet the specific needs of their populations, ensuring that individuals with SMI and children with SED receive comprehensive and effective care.

How Funds are Distributed

States and territories receive MHBG funding directly based on a formula grant that is based on population size, mental health needs, and economic factors.

States and territories submit an application to SAMHSA, outlining a detailed plan for how funds will be used to support mental health services, including a needs assessment, goals, objectives, and performance measures. States and territories then distribute funds to local mental health authorities, community-based organizations, and other service providers through sub-grants and contracts.

Nonprofits cannot apply directly for the MHBG but can become involved in the process by applying for sub-grants or contracts that are funded by the MHBG. Each state and territory will set its own requirements for such contracts, which will usually be published through RFPs or grant announcements. Interested community-based providers can also consider advocating for kinship families as a specific focus as states and territories conduct needs assessments and develop their MHBG plans.

Where to Find More Information

For more information about the Community Mental Health Services Block Grant, individuals and organizations should look to:

  • Substance Abuse and Mental Health Services Administration (SAMHSA): Detailed information about MHBG, relevant guidance, and up-to-date contact information is available at https://www.samhsa.gov/grants/block-grants/mhbg.
  • State Mental Health Authority: Contact information for your state’s mental health authority can usually be found on your state’s government website.

Community Services Block Grant

Department: U.S. Department of Health and Human Services (HHS)
Agency: Administration for Children and Families (ACF)

Overview

The Community Services Block Grant (CSBG) provides funding to states, territories, and tribes for activities that alleviate the causes and conditions of poverty in communities that are under-resourced. Funds are distributed directly to territories and tribes, and states receive funds through the over 1,000 Community Action Agencies (CAAs). CSBG funds support a wide array of community-based services aimed at reducing poverty and promoting self-sufficiency. Services offered using those funds are based on assessments conducted by local agencies and may relate to areas such as job skills and placement, education, asset building, housing, nutrition, crisis intervention, and health care.

Eligible Services

CSBG funds can be flexibly used for a variety of services aimed at alleviating poverty, revitalizing economically challenged communities, and promoting self-sufficiency in individuals and communities. CAAs tailor the services provided to the specific needs of their communities. These services can include, but are not limited to:

  • Housing Assistance: Emergency housing and shelter services; help with rent, utilities, and home repairs; support for home weatherization; and assistance securing affordable housing
  • Emergency Services: Food pantries and meal programs, crisis intervention and emergency financial assistance, and disaster relief
  • Community Development: Programs for low-income neighborhood revitalization, civic engagement initiatives, and economic development
  • Employment and Job Training: Programs to enhance job skills and offer resume and interview preparation assistance, provide job placement and career counseling services, and support employment retention
  • Education: College readiness programs, adult education and literacy programs, and afterschool programs and tutoring
  • Health Services: Health education, nutrition and healthy living initiatives, screenings, and access to medical care
  • Income Management: Financial literacy programs, budgeting assistance, and tax preparation services
  • Support Groups: Peer support programs, veterans’ programs, and domestic violence supports

Additionally, 1.5% of CSBG funds are reserved for technical assistance and monitoring. These funds are awarded to statewide and local organizations and associations with demonstrated expertise in supporting low-income individuals, families, and communities.

How Funds are Distributed

States and territories receive CSBG funds directly based on a statutory formula and must pass through no less than 90% of funds to eligible local entities, including local governments, tribes and tribal organizations, and CAAs that partner with community-based organizations to deliver services. Tribes and tribal organizations can apply to receive funding directly from ACF.

Community Action Agencies are the primary recipients of CSBG funds and are responsible for distributing those funds to support community services. Community-based organizations that are not designated as a CAA can provide community support with CSBG funds by establishing or joining projects or initiatives to address community needs and subcontracting with CAAs. While individual practices vary, many CAAs will share requests for proposals or other funding opportunities.

Additionally, CAAs are required by statute to conduct a Community Needs Assessment to identify and prioritize local needs and to develop a Community Action Plan accordingly. Kin-serving organizations are encouraged to participate in the Community Needs Assessment process to advocate for the inclusion of services that support kinship families. 

Where to Find More Information

For more information about the Community Services Block Grant, interested individuals and entities should look to:

Example

The Oakland Livingston Human Service Agency (OLHSA), a CAA in southeastern Michigan, uses CSBG funds to operate a Grandparents Raising Grandchildren program. The program offers a wide array of support programs for kin caregivers, including:

  • In-person and virtual support groups to build community and support caregivers in navigating the complexities of kinship care
  • Interactive seminars on topics relevant to kin caregivers, such as wellness, parenting, and legal issues
  • Intergenerational activities to strengthen the bonds between grandparent caregivers and their grandchildren, including museums visits; Detroit Tigers games; and beach, park, and camping trips
  • Monthly emails with relevant resources

HOME Investment Partnerships Program (HOME)

Department: U.S. Department of Housing and Urban Development (HUD)
Agency: Office of Community Planning and Development

Overview

The HOME Investment Partnerships Program (HOME) is a federal block grant program that allocates funds to states and local governments to improve the availability of affordable housing for households with low incomes. The program is the largest federal block grant aimed at expanding and preserving affordable housing through a variety of activities, including construction, purchase, and rehabilitation of affordable housing for rent or homeownership, as well as direct assistance for renters with low incomes. HOME is designed to empower local governments—often in partnership with local nonprofit organizations and community housing development organizations—to address their unique housing needs while ensuring that the housing produced meets local demand and is sustainable in the long term.

Eligible Services

Funds from the HOME program can be used to support activities that promote the development, rehabilitation, and provision of affordable housing. These services may include:

  • New Construction: Funding the construction of new affordable housing units to increase the supply of housing for families with low incomes
  • Rehabilitation: Supporting the rehabilitation of existing housing units to ensure they meet safety and livability standards, thereby preserving affordable housing stock
  • Homebuyer Assistance: Providing down payment assistance, closing cost assistance, and subsidies to make homeownership more accessible to individuals and families with low incomes
  • Rental Assistance: Offering direct rental assistance to households with low incomes, including help with the cost of rent, security deposits, and utility deposits, allowing them to secure and maintain stable housing

How Funds are Distributed

States receive 40% of HOME funds, while participating counties and cities receive 60% of funds. Funds are distributed based on an allocation formula that takes into account population, poverty levels, and the condition of existing housing stock.

Awardees can run affordable housing programs or can partner with eligible local governments, nonprofit organizations, and/or Community Housing Development Organizations. Some participating jurisdictions leverage private sector funding to further expand affordable housing. These entities use the funds to develop, rehabilitate, or provide affordable housing, including homebuyer assistance and rental subsidies.

The program requires a 25% match from local, state, or private sources, which encourages local investment in affordable housing projects. This match requirement also ensures that communities are actively involved in the success and sustainability of the housing initiatives supported by HOME funds​.

Where to Find More Information

For more information about the HOME Investment Partnerships Program, interested individuals and entities should look to:

Note

Kin-serving organizations can request HOME funds from their state, county, or city to build, rehabilitate, or purchase affordable housing for kinship families. Organizations without extensive experience in housing development and management should consider partnering with local Community Housing Development Organizations to propose projects for affordable intergenerational or grandfamilies’ housing.

Social Services Block Grant

Department: U.S. Department of Health and Human Services (HHS)
Agency: Administration for Children and Families (ACF)

Overview

The Social Services Block Grant (SSBG) provides funding to states and territories to support a broad range of social services aimed at reducing dependency, achieving self-sufficiency, and improving the quality of life for individuals and families. States and local agencies use SSBG funds to support diverse programs that address the needs of various population groups, including children, adults, and older adults. The flexible nature of SSBG funding allows states to tailor services to the unique needs of their communities.

Eligible Services

SSBG funds can be used to support a wide array of services designed to assist individuals and families in achieving self-sufficiency and improving their well-being. These services may include:

  • Child Care Services: Providing child care to enable caregivers to work or attend education and training programs
  • Protective Services for Children and Adults: Services to prevent and address the impacts of neglect, abuse, or exploitation
  • Health-Related Services: Health support services such as home health care, family planning, and rehabilitation
  • Transportation Services: Providing transportation to access various essential services, including medical appointments, job training, and education
  • Employment Services: Job training, employment counseling, and job placement services to help individuals achieve economic independence
  • Housing Services: Support for individuals in securing affordable housing and maintaining stable living conditions
  • Special Services for Individuals with Disabilities: Programs designed to support individuals with physical or mental disabilities in achieving greater independence

States have significant flexibility in determining the specific programs that will be supported with SSBG funds. They can adapt and modify the use of these funds over time to address the evolving needs of their populations.

How Funds are Distributed

States and territories receive SSBG funds based on a statutory formula and are responsible for distributing these funds to local agencies and organizations. Additionally, states can transfer up to 10% of funds they receive through the Temporary Assistance for Needy Families (TANF) block grant to the SSBG. These funds must be utilized exclusively for programs or services benefiting families with incomes below 200% of the federal poverty level or the children from those families.

As a pre-requisite to receiving SSBG funds, states must submit a Pre-Expenditure Report and Intended Use Plan, which detail the state’s intended use of funds. During this process, states must make the Pre-Expenditure Report available for public inspection and comment.

States have the flexibility to allocate funds according to their priorities and needs assessments. Local entities, including nonprofits and community organizations, can apply for funding to implement specific programs and services.

Where to Find More Information

For more information about the Social Services Block Grant, interested individuals and entities should look to:

Substance Use Prevention, Treatment, and Recovery Services Block Grant

Department: U.S. Department of Health and Human Services (HHS)

Agency: Substance Abuse and Mental Health Services Administration (SAMHSA)

Overview

The Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUPTRS BG or SUBG), formerly the Substance Abuse Prevention and Treatment Block Grant (SABG), is a federal grant program that provides funding to states, territories, and the Red Lake Band of Chippewa Indians to plan, implement, and evaluate activities that prevent and treat substance use. While the SUBG is designed to be flexible so jurisdictions can tailor programs to meet local needs, activities must include tuberculosis services, early intervention services for HIV/AIDS, and services related to the primary prevention of substance use. Additionally, activities must address the needs of intravenous drug users, pregnant women, and women with dependent children.

No less than 20% of SUBG spending must be focused on strategies for the primary prevention of substance use.

Eligible Services

Nonprofit organizations can use SUBG funds for various purposes related to substance abuse prevention and treatment, including:

  • Prevention Services: Education and outreach activities, afterschool programs, mentoring, youth leadership programs, and parenting programs
  • Treatment Services: Outpatient and residential treatment programs, counseling services, and medication-assisted treatment
  • Recovery Support Services: Peer support programs and groups, transitional housing and sober living environments, and employment assistance for individuals in recovery
  • Training and Workforce Development: Training health care providers, social workers, and other professionals in evidence-based practices for substance abuse prevention and treatment

How Funds are Distributed

Jurisdictions receive SUBG funds directly according to a statutory formula.

Jurisdictions submit an application to SAMHSA that outlines a detailed plan for how funds will be used to prevent and treat substance use, including a needs assessment, a description of planned programs and services, and budget details. Grantees then distribute funds to local agencies, community-based organizations, health care providers, and other entities through sub-grants and contracts.

Nonprofits cannot apply directly for the SUBG but can become involved in the process by applying for sub-grants or contracts that are funded by the SUBG. Each jurisdiction sets its own requirements for such contracts, which will usually be published through requests for proposals or grant announcements. Interested community-based providers can also consider advocating for a specific focus as jurisdictions conduct needs assessments and develop their SUBG plans.

Where to Find More Information

For more information about the Substance Use Prevention, Treatment, and Recovery Services Block Grant, individuals and organizations should look to:

Temporary Assistance for Needy Families

Department: U.S. Department of Health and Human Services (HHS)
Agency: Administration for Children and Families (ACF)

Overview

Temporary Assistance for Needy Families (TANF) is a federal block grant program that provides states, territories, and federally recognized tribes and tribal consortia with funding to assist families in need. Established in 1996 through the Personal Responsibility and Work Opportunity Reconciliation Act, TANF aims to help families with low incomes achieve self-sufficiency by providing temporary financial assistance and supporting services that promote work, education, and family stability. TANF gives broad flexibility to states, territories, and tribes to design and implement programs that address the specific needs of their populations, within the framework of federal requirements.

While TANF plays a critical role in providing basic assistance to families through family and child-only cash grants, this makes up less than 25% of TANF spending. The majority of TANF funds are used to provide a wide range of supportive services, such as child care, work assistance, and youth activities. Additionally, states can transfer a portion of TANF funds to other programs like the Child Care and Development Fund or the Social Services Block Grant.

Eligible Services

States, territories, and tribes have broad discretion to allocate and spend TANF funds to support a variety of services and activities. TANF funds must be used in a manner that is “reasonably calculated” to align with the program’s four primary goals:

  1. Provide assistance to needy families so that children may remain in their homes or in the homes of relatives (emphasis added)
  2. End the dependence of needy parents on government benefits through work, job preparation, and marriage
  3. Reduce out-of-wedlock pregnancies
  4. Promote the formation and maintenance of two-parent families

Some examples of services funded by TANF include:

  • Kinship navigator programs
  • Child care services
  • Transportation services
  • Substance use prevention and treatment services
  • Parenting skills education
  • Job training and employment services
  • Home visiting programs
  • Family resource centers
  • Early education, Head Start, and pre-kindergarten
  • Legal assistance
  • Domestic violence services

How Funds are Distributed

Funds for the TANF Block Grant are allocated based on a fixed formula. Each state receives a set amount of funding annually, determined by historical expenditure levels from the Aid to Families with Dependent Children (AFDC) in the 1990s. Tribes that are approved for the tribal TANF program receive funds equal to the federal share of non-child care expenditures under the AFDC and JOBS programs in 1994 for Indian families residing in the Tribe’s service area.

In addition to receiving federal funds, states are required to allocate a minimum level of their own non-federal funds toward populations and activities related to TANF. This required “maintenance of effort” contribution is calculated based on spending levels from programs that existed before TANF was implemented. Some states choose to exceed this required minimum.

Each state, territory, and Tribe must create and submit a TANF plan that details expected uses of TANF funds. These plans must be submitted to the federal government every two years but can be amended at any time.

Following the allocation of TANF funds, states, territories, and tribes offer benefit programs directly or contract with public and private entities to administer services in accordance with the primary goals of TANF. Community-based organizations interested in delivering services and programs under TANF should contact their state, territorial, or tribal TANF agency.

Where to Find More Information

For more information about the TANF Block Grant, interested individuals and entities should look to:

  • Administration for Children and Families (ACF): Detailed information, relevant guidance, and up-to-date contact information is available at acf.hhs.gov.
  • TANF Agencies: Contact information for TANF programs is available through the ACF’s website and regional offices at acf.hhs.gov/ofa/map/about/help-families.

Examples

There is a history of TANF block grants being used for kinship navigator programs and other services in states around the country. In 2001, Tennessee started its Relative Caregiver Program using TANF funds. More recently, Louisiana’s statewide Kinship Navigator Program, run out of its 9 Family Resource Centers, is being funded through TANF state block grant funds. Legal Aid of West Virginia receives TANF state block funds to provide legal services to kinship caregivers who receive TANF child-only benefits. 

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