Community Services Block Grant

The objectives of the Community Services Block Grant (CSBG) are to provide assistance to states and local communities, working through a network of community action agencies (CAAs) and other neighborhood-based organizations, for the reduction of pove

The Community Services Block Grant (CSBG) provides assistance to states and local communities, working through a network of community action agencies (CAAs) and other neighborhood-based organizations, for the reduction of poverty, the revitalization of low-income communities, and the empowerment of low-income families and individuals in rural and urban areas to become fully self-sufficient (particularly families who are attempting to transition off a State program carried out under part A of title IV of the Social Security Act) and aims (1) to provide services and activities having a measurable and potential major impact on causes of poverty in the community or those areas of the community where poverty is a particularly acute problem; (2) to provide activities designed to assist low-income participants, including the elderly poor, to: (a) secure and retain meaningful employment; (b) attain an adequate education; (c) make better use of available income; (d) obtain and maintain adequate housing and a suitable living environment; (e) obtain emergency assistance through loans or grants to meet immediate and urgent individual and family needs, including health services, nutritious food, housing, and employment-related assistance; (f) remove obstacles and solve problems which block the achievement of self-sufficiency; (g) achieve greater participation in the affairs of the community; and (h) make more effective use of other related programs; (3) to provide on an emergency basis for the provision of such supplies and services, nutritious food, and related services, as may be necessary to counteract conditions of starvation and malnutrition among the poor; and (4) to coordinate and establish linkages between governmental and other social services programs to assure the effective delivery of such services to low-income individuals. In addition to the CSBG funding to states, the Office of Community Services (OCS) funds additional discretionary projects through cooperative agreements for training and technical assistance (T/TA).

The Secretary is authorized to make CSBG awards to states. This includes each of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana Islands. The Secretary also provides assistance directly to the governing body of an Indian Tribe or Tribal organization upon application by the tribe. Only state-recognized tribes, as evidenced by a statement to that effect by the Governor, or tribes formally recognized by the Secretary of the Interior, under the procedure for such recognition in 25 CFR Part 54, are eligible to receive direct awards. In order for a private nonprofit or public organization to be considered an eligible entity, they must administer the CSBG program through a tripartite board as described in 42 USC 9910 that fully participates in the development, planning, implementation, and evaluation of the program to serve low-income communities. For the discretionary T/TA cooperative agreements: Eligible entities include CSBG eligible entities, or statewide or local organizations or associations, with demonstrated expertise in providing training to individuals and organizations on methods of effectively addressing the needs of low-income families and communities. Applications from individuals (including sole proprietorships) and foreign entities are not eligible. Faith-based and community organizations that meet the eligibility requirements are eligible to receive awards.

Beneficiaries are low-income individuals and families. The official poverty line, as established annually by the Secretary of Health and Human Services (HHS), is used as a criterion of eligibility in CSBG. For FY 2025, the HHS Poverty Guidelines set the poverty line at $32,150 for a family of four in the contiguous United States. When a state determines that it serves the objectives of the block grant, it may revise the income limit, not to exceed a certain percentage of the official poverty line. Historically, the percentage has been set at 125%. However, Congressional appropriations made since FY2020 allow states to revise the percentage to 200% of the official poverty line. This has not been changed by Congressional action as of FY2026.

States receive block grants to minimize the causes of poverty in communities. The block grant approach gives the States flexibility to tailor their programs to the particular services needs in their communities. States are required to use at least 90 percent of their allocations for awards to "eligible entities" as defined in the Community Services Block Grant (CSBG) Act, as amended; this includes primarily locally based community action agencies and/or organizations that serve seasonal or migrant farm workers. No more than the greater of $55,000 or 5 percent of each State's allocation may be used for administrative expenses at the State level. For discretionary T/TA awards: funds may be used in accordance with the objectives outlined in each NOFO and the terms and conditions of the award.

Funds may not be used for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost residential weatherization or other energy-related home repairs) of any building or other facility unless a waiver is approved by the Secretary.

For CSBG: Entitlement amounts are allocated for a specific fiscal year, and the funds allotted to the State are awarded in accordance with the apportionment of funds from the Office of Management and Budget (OMB). Any amounts unobligated by the State at the end of the fiscal year will remain available for obligation during the subsequent fiscal year.

States must hold public meetings about their plans for using and distributing money they receive under the CSBG Act.

For CSBG Block Grants: Not applicable. For discretionary T/TA awards: The criteria for selecting proposals will be published in the NOFO.

For CSBG, funds are allocated to recipients using a formula method. For Cooperative Agreements: Each application is reviewed against four factors: eligibility, the application deadline, required electronic submission or waiver requested and approved, and the Award Ceiling. If the application does not meet all of these factors, then it is disqualified from the merit review process. After the initial review, applications are reviewed and evaluated by merit review panels using only the criteria described in the Application Review section of the NOFO. Each panel is composed of experts with knowledge and experience in the area under review. Generally, review panels include three reviewers and one chairperson. While merit review scores and their ranking are not binding, ACF does consider them when selecting projects for funding. Scores and rankings are only one element used in the award decision-making process. Other criteria are explained in the Program Description section and in the Application Review section of the NOFO. For example, ACF reserves the right to evaluate applications in the larger context of the overall portfolio by considering the geographic distribution of federal funds (e.g., ensuring coverage of states, counties, or service areas) in its pre-award decisions. ACF may elect not to fund applicants with management or financial problems that would indicate an inability to successfully complete the proposed project. In addition, ACF may elect to not allow a prime recipient to subaward if there is any indication that they are unable to properly monitor and manage subrecipients. Applications may be funded in whole or in part. Successful applicants may be funded at an amount lower than requested.

Discretionary Awards: September 30 through September 29 annually. Non-Discretionary Awards: September 1 through 30 annually.

Discretionary Awards may be renewed based on availability of funds, satisfactory progress, compliance with terms and conditions and a determination that continuation funding is in the best interest of the federal government. Non-Discretionary Awards are distributed based on state plans that are reviewed and approved between September 1-30th annually. These awards are allocated on a quarterly basis, beginning October 1 through September annually, without a formal renewal process, as funding is contingent upon the approved state plan and compliance with statutory guidelines.

Funds may be withheld from any State which does not utilize its allotment substantially in accordance with the provisions of the Community Services Block Grant Act and the assurances provided in its application. States may terminate or reduce funding to an eligible entity, but this may be done only after adequate notice and an opportunity for a hearing is conducted within the affected State. For discretionary awards: There is no appeal process for unsuccessful applicants. For existing recipients, appeals regarding disputes may take place in accordance with 45 CFR Part 16, subject to the limitations of the Appendix A.