Government Drops $12 Billion on Disaster Recovery Grants
Published Date: 1/16/2025
Notice
Summary
HUD is rolling out over $12 billion in disaster recovery funds to help communities hit by major disasters in 2023 and 2024. These funds come with new rules and flexible options to speed up rebuilding and recovery, starting January 21, 2025. If you’re part of a community affected by these disasters, get ready to access money and support with clearer steps and deadlines.
Analyzed Economic Effects
6 provisions identified: 4 benefits, 0 costs, 2 mixed.
More than $12 billion for recovery
HUD is making $12,070,701,000 available for Community Development Block Grant—Disaster Recovery for major disasters in 2023 and 2024. Of that total, $12,039,000,000 is new appropriations and $31,701,000 are unobligated prior balances; this notice announces $11,889,437,000 in allocations now, with $102,414,000 to be allocated later.
Where funds must be spent (MID rules)
HUD requires that certain named grantees (a list including Little Rock, AR; multiple Florida counties and cities; Guam; Maui County, HI; Chicago, IL; Detroit, MI; and others) must use 100 percent of their allocation to address unmet disaster needs and mitigation that benefit HUD-identified Most Impacted and Distressed (MID) areas. All other grantees must use at least 80 percent of their allocation for unmet needs or mitigation benefiting HUD-identified MID areas and may use up to 20 percent for grantee-identified MID areas.
Administrative set‑asides and capacity funds
The Appropriations Act sets aside $78,850,000 from the total for specific purposes: $45,000,000 for HUD Office of Community Planning and Development salaries and expenses, $1,850,000 for a disaster recovery portal, $7,000,000 for the Office of Inspector General, and $25,000,000 for capacity building and technical assistance to support recipients.
Action plan due within 90 days
Grantees must submit an Action Plan to HUD within 90 days of the applicability date (January 21, 2025). HUD is requiring paper submission to the assigned Community Planning and Development (CPD) Specialist and a copy to the designated HUD email address, and encourages use of the Action Plan template on HUD's CDBG-DR Universal Notice website.
Six‑year spending requirement
HUD establishes an alternative requirement that each grantee must expend 100 percent of its allocation within six years of the date HUD signs the grant agreement; HUD may administratively extend this period for good cause upon request and approval. Any remaining unexpended funds at grant close will be recaptured by HUD.
Waivers to speed recovery
Under the 2025 Appropriations Act, the Secretary may waive or specify alternative requirements for statutes or regulations administered in connection with these funds, except for fair housing, nondiscrimination, labor standards, and environmental requirements. Waivers and alternative requirements discussed in HUD's Universal Notice apply to these allocations and are effective five days after publication in the Federal Register or on HUD's website; grantees may request additional waivers as needed.
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