Community development block grant disaster recovery (CDBG-DR) and community development block grant mitigation (CDBG-MIT) grant funds are appropriated by congress and allocated by the department of…

The Department of Housing and Urban Development awarded the New Mexico Department of Homeland Security and Emergency Management $137.178 million under the Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii (CFDA 14.228) on September 24, 2025, as a formula grant allocation for Community Development Block Grant Disaster Recovery (CDBG-DR) and Community Development Block Grant Mitigation (CDBG-MIT) funding.

The recipient will deploy funds for long-term recovery, infrastructure restoration, housing recovery, economic revitalization, and mitigation activities in presidentially declared disaster areas across New Mexico. All funded activities must address direct or indirect impacts of the covered disaster within declared areas. The New Mexico Department of Homeland Security and Emergency Management, serving as the pass-through entity, will develop an action plan outlining allocation of funding to recovery programs, subject to public comment and HUD review before execution.

The period of performance runs through September 24, 2031, with place of performance in Santa Fe, New Mexico. The department distributes sub-awards to county governments, municipalities, tribal entities, and nonprofit organizations statewide to implement recovery initiatives. HUD allocates CDBG-DR and CDBG-MIT funds based on unmet recovery needs; grantees may use funds flexibly across disaster-related long-term recovery activities authorized under Title I of the Housing and Community Development Act of 1974, as amended.

Activities

State and local governments receive cdbg-DR and cdbg-MIT funds from HUD to assist communities recovering from a presidentially declared disaster. HUD allocates funds based on the unmet recovery needs of each community. HUD issues an allocation announcement notice in the federal register which will include the list of grantees, allocations, and any waivers and alternative requirements. Grantees may use the funds for disaster related long-term recovery, restoration of infrastructure, housing, economic revitalization, and mitigation activities. All cdbg-DR and cdbg-MIT activities must clearly address a direct or indirect impact of the disaster in a presidentially declared area for the covered disaster. Each grantee must develop an action plan that outlines how the grantee plans to allocate funding to a combination of recovery programs. Each grantee must make the draft action plan available for public comment and feedback prior to submitting the plan to HUD for review. Once approved, the action plan serves as the blueprint for the grantee's cdbg-DR program. The action plan process is outlined in the applicable allocation announcement notice.

Expected outcomes

Cdbg-DR funds are expected to result in long-term disaster recovery for communities impacted by presidentially declared disasters.

Intended beneficiaries

Cdbg-DR funds are intended primarily for low- and moderate-income households per statutory requirements. Cdbg-DR is the only federal disaster resource that prioritizes low- and moderate-income households. Low- and moderate-income means a family or household with an annual income less than the section 8 low income limit, which is generally 80 percent of the area median income. Most allocations of cdbg-DR and cdbg-MIT funds require grantees use 70 percent of the grant funds to benefit low- and moderate-income persons, however grantees must review the applicable federal register notice governing the funds to confirm the requirements of each grant. Overall, cdbg-DR funds should be used to assist individuals, communities, and/or businesses situated in the most impacted and distressed areas affected by a presidentially declared disaster.

Subrecipient activities

The subrecipient activities are unknown at the time of award.