Periodically, Congress has provided supplemental appropriations for Community Development Block Grants for Disaster Recovery (CDBG-DR), administered by the Department of Housing and Urban Development (HUD). This funding is intended to support needs unmet by other forms of federal disaster assistance, such as including Federal Emergency Management Agency grants(FEMA) grants and Small Business Administration loans. Since 1993, Congress has appropriated more than $100$109 billion in supplemental CDBG-DR funds. Typically, CDBG-DR funds have been directed to the “"most impacted and distressed areas”" with major disaster declarations under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act). ).

Broadly, CDBG-DR funds are subject to the conventional Community Development Block Grant program’s Program's statutory authority and regulatory requirements. In addition. However, the text of each CDBG-DR supplemental appropriationappropriations historically has included specific statutory directives and authorized HUD to establish waivers and alternative requirements as circumstances may require.

The ad hoc nature of this process has allowed Congress and HUD to adapt CDBG-DR requirements to the specific needs of affected communities. Some analysis indicates indicates that it has also contributed to recovery coordination and planning challenges. Reporting by the The Government Accountability Office (GAO) has reported some findings, however, (GAO) provides evidence of protracted rulemaking periods, inconsistent administrative timeframestime frames, and funding delays. Some grantees have also expressed concernsconcern with the administrative burden of simultaneously managing multiple CDBG-DR grants with differing sets of requirements.

GAO and HUD’sthe HUD Office of Inspector General (HUD-OIG) have recommended permanent authorization and regulatory codification of these (or similar) long-term disaster recovery investments. This Insight describes selected HUD actions and bills from the 118^th Congress related to these recommendations.

Universal Notice

On January 8, 2025, HUDHUD published a “"Universal Notice,”" in the Federal Register, to standardize and clarify the CDBG-DR rulemaking process. According to HUD, the Universal Notice is a uniform rulemaking document with waivers and alternative requirements that can be activated to accompany an Allocation Announcement Notice, (AAN) when Congress provides supplemental appropriations and rulemaking authority for CDBG-DR. HUD’The first AAN subject to the Universal Notice requirements was published on January 16 and provided allocations for disasters occurring in 2023 and 2024 pursuant to P.L. 118-158. HUD's stated intent in establishing a Universal Notice is to “"provide grantees and the public with increased transparency, consistency, and more timely access to CDBG–DR funds, helping to minimize program delays and accelerate recovery.”" The Universal Notice outlines the baseline waivers and alternative requirements associated with three key phases of the CDBG-DR grants management process:

1. Action Plan development, 2. financial certification and oversight of funds, and 3. implementation of Universal Notice requirements.

The Universal Notice was developed with public input solicited in a December 2022, HUD Request for Information notice in the Federal Register, which elicited 87 responses.

In coordination with the Universal Notice publication, HUD announced a series of related technical assistance webinars. The agency held two introductory webinars on January 14 and January 21, 2025. On January 27, HUD announced postponement of three remaining webinars regarding specific components of the Universal Notice.

Subsequently, HUD amended the Universal Notice on March 19 and March 31. According to HUD, the amendments were intended to conform with several executive orders and a presidential memorandum issued between January 20 and February 19 on subjects pertaining to the cost of living and diversity, equity, and inclusion practices. HUD also announced a 60-day extension for CDBG-DR grantees that received an allocation for disasters occurring in 2023 or 2024 that were subject to the initial Universal Notice requirements.

Some Members of Congress have expressed concern and called for scrutiny of the efficacy and potential administrative burdens associated with the Universal Notice amendments. On June 16, in response to a letter from Senators Elizabeth Warren and Patty Murray requesting a review of a range of HUD and CDBG-DR issues (including the changes to CDBG-DR Universal Notice requirements), HUD-OIG indicated that it is "closely monitoring HUD's actions on each of these issues through regular coordination with HUD leadership."

Prior to development of the Universal Notice, HUD began to include a consolidated notice as an appendix in Federal Register notices announcing allocations for disasters occurring in 2020, 2021, and 20222020, 2021, and 2022, as well as selected 2023 disasters. The consolidated notice—and its accompanying guidance—outlined uniform CDBG-DR processes and requirements for grantees covered by these allocations and rulemaking.

Organizational Structure

In 2023, HUD announced a series of changes to its administrative structure and capacity to carry out its growing role administering federal disaster assistance. HUD’'s Disaster Recovery and Special Issues Division became an official HUD Office, under the name Office of Disaster Recovery (ODR). The ODR consists of three divisions focused on (1) policy;, (2) operations;, and (3) grants management.

Related Legislative Proposals

HUD has emphasized that establishing the ODR did not change CDBG-DR’'s authorization status, regulatory structure, or funding process—all which would require legislative action in Congress. In its FY2023, FY2024, and FY2025FY2023, FY2024, and FY2025 Congressional Budget Justifications, HUD expressed support for CDBG- DR authorization. As summarized below, someHUD's FY2026 Congressional Justifications did not include such language. Some Members of Congress have proposed legislation that would authorize CDBG-DR within HUD, or or establish a similar new program to provide for long-term unmet disaster recovery needs in another agency.

ReformingTwo recent examples of bills are discussed below. Natural Disaster Recovery Program ActAct

The ReformingNatural Disaster Recovery Program Act of 2025 (H.R. 316) would establish a dedicated fund in the Treasury and authorize FEMA to provide assistance for unmet disaster recovery needs of states and tribal governments. Versions of this bill were introduced in the 118^th Congress (H.R. 9750) and the 117^th Congress (H.R. 2809). The bill introduced in the 118^th Congress was reported out of committee. ReformingAct (S. 1686 /H.R. 5940), introduced in the 118^th Congress, would have formalized HUD’s role in federal assistance for long-term disaster recovery, authorizing CDBG-DR as a standing program, directing HUD to codify program regulations, and establishing a dedicated fund for the program within the Treasury, among other provisions. A version of the bill introduced in the 116^th Congress, H.R. 3702, had passed in the House under suspension of the rules by a vote of 290-118.

Expediting Disaster Recovery Act

The ExpeditingReforming Disaster Recovery Act (S. 1686/H.R. 5940H.R. 6084), introduced in the 118^th Congress, would have amended Title IV of the Stafford Act to establish a program for unmet disaster recovery needs. Specifically, the bill would have enabled the President to allocate funding through the Federal Emergency Management Agency for activities related to housing, economic recovery, assistance for families, and other services as needed. Although H.R. 6084 did not advance in the 118^th Congress, a version of the bill introduced in the 117^{formalized HUD's role in federal assistance for long-term disaster recovery, authorizing CDBG-DR as a standing program, directing HUD to codify program regulations, and establishing a dedicated fund for the program within the Treasury, among other provisions. A version of the bill introduced in the 116th} Congress, H.R. 5774 ,3702, had passed in the House under suspension of the rules by a vote of 290-118. the House under suspension of the rules by a vote of 406-20.