The Indian Community Development Block Grant (ICDBG) Program: An Overview

The Indian Community Development Block Grant (ICDBG) Program: An Overview

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Updated May 17, 2022
The Indian Community Development Block Grant (ICDBG)
Program: An Overview
The Indian Community Development Block Grant
Fiscal Year
ICDBG
CDBG
Public Law
(ICDBG) program is a tribal economic development
assistance program administered by the Department of
2020
$70.0 mil ion
$3.4 bil ion
P.L. 116-94
Housing and Urban Development’s (HUD) Office of Native
American Programs. Although it is authorized under the
2021
$70.0 mil ion
$3.5 bil ion
P.L. 116-260
same statute and has a name similar to the Community
2022
$72.1 mil ion
$3.3 bil ion
P.L. 117-103
Development Block Grant (CDBG), the ICDBG program
operates distinctively from the CDBG program. This In
Source: Tabulated by CRS from appropriations legislation.
Focus provides an overview of the ICDBG program’s
Notes: The “CDBG” column provides the base number from which
structure, program elements, and supplemental uses in
the 1% set-aside would be calculated.
response to certain emergencies and disasters.
Program Features
The ICDBG program is sometimes compared to HUD’s
The ICDBG program provides both competitive and
larger Indian Housing Block Grant (IHBG) program.
noncompetitive grants to federally-recognized Indian tribes
However, the IHBG is more narrowly focused on housing,
and Alaska Native villages to support the development of
and does not allow for the breadth of projects potentially
housing, suitable living environments, and economic
fundable under ICDBG. For more information on IHBG
opportunities. Like CDBG, program funds are required to
and related programs, see CRS Report R43307, The Native
principally benefit low-and moderate-income persons (24
American Housing Assistance and Self-Determination Act
C.F.R. §1003.208). Under the ICDBG program, low- and
of 1996 (NAHASDA): Background and Funding, by Katie
moderate-income is defined as an individual, family, or
Jones.
household with an income at or below 80% of the area
median income (24 C.F.R. §1003.4).
ICDBG Structure and Administration
The Department of Housing and Urban Development is
As mentioned above, despite its name, the ICDBG program
among the largest sources of federal community and
is administered separately from CDBG, though they share
economic development funding, primarily through the
authorizing legislation and similar community development
CDBG program. Similarly, the ICDBG program provides
goals. For instance, CDBG is a block grant program in
significant funding to federally-recognized tribal nations
which the majority of funds are distributed through two
and Alaska Native villages to address community and
separate formula allocation processes for (1) states and (2)
economic development needs, as well as “imminent threats”
local “entitlement communities,” after which sub-awards
to community health or safety. Like the CDBG program,
may be administered. ICDBG functions as a single program
the ICDBG program derives its authority under Title I of
with two principal grant types, for eligible tribal entities.
the Housing and Community Development Act of 1974 (42
Grants are awarded in two categories:
U.S.C. §5301 et seq.).
 Single Purpose competitive grants for community and
Recent Appropriations
economic development needs; and
By statute, the ICDBG program is to receive a 1% set-aside
of Title I CDBG appropriations, excluding amounts
 Imminent Threat grants, which are allocated on a
provided for certain specified uses. In practice, Congress
noncompetitive basis as available to eliminate or
has enacted larger appropriations separately for ICDBG,
mitigate issues posing an imminent threat to the public
exceeding the 1% set-aside. For FY2022, the ICDBG
health or safety of tribal residents (e.g., a natural
program received $72 million in funding (or approximately
disaster).
2%). Table 1 shows ICDBG appropriations in millions and
CDBG appropriations in billions, from FY2018 to FY2022.
Eligible entities, such as tribes and Alaska Native villages,
may apply for Single Purpose competitive grants through an
Table 1. ICDBG Appropriations
annual Notice of Funding Availability (NOFA). Most
FY2018 to FY2022
recently, HUD awarded a total of $120 million to support
107 projects through a combined FY2019 and FY2020
Fiscal Year
ICDBG
CDBG
Public Law
announcement. For FY2018, HUD funded $63 million in
ICDBG awards to 85 tribal communities.
2018
$65.0 mil ion
$3.4 bil ion
P.L. 115-141
2019
$65.0 mil ion
$3.4 bil ion
P.L. 116-6
Single Purpose grants support projects in three broad
categories: (1) housing, including construction and land
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link to page 2 The Indian Community Development Block Grant (ICDBG) Program: An Overview
acquisition; (2) community facilities, such as basic
Table 2. Area ONAP Allocations
infrastructure and community buildings; and (3) economic
FY2018 to FY2020 (Dol ars in Mil ions)
development, including a variety of commercial, industrial,
and agricultural projects owned and operated by the
ONAP
FY2018
FY2019
FY2020
grantee, or a third party.
Alaska
$7.85
$7.89
$8.86
HUD encourages tribal entities to contact the relevant HUD
Eastern
$4.95
$5.03
$5.42
area Office of Native American Programs (ONAP), prior to
Woodlands
applying for an Imminent Threat grant, in order to confirm
eligibility and funding availability.
Northern
$9.51
$9.26
$10.40
Plains
Funding Allocations
Northwest
$3.35
$3.38
$3.71
ONAP allocates ICDBG funding to six area ONAPs, each
with a specific geographic jurisdiction. Each area ONAP
Southern
$15.01
$14.87
$16.82
receives a base amount of $1 million with additional
Plains
ICDBG program funds awarded based on the following
Southwest
$21.75
$21.07
$23.90
formula (24 C.F.R. §1003.101):
Source: Tabulated by CRS from HUD data.
 40% based on each area ONAP’s share of the total
Notes: FY2021 al ocations have not yet been released.
eligible Indian population;
ICDBG Emergency Supplemental Appropriations
 40% based on each area ONAP’s share of the total
Following an emergency, disaster, or other major
poverty among the eligible Indian population; and
contingency, Congress has sometimes enacted supplemental
appropriations to the ICDBG program to provide additional
 20% based on each area ONAP’s share of the total
assistance to ICDBG-eligible entities. Indian communities
extent of overcrowded housing among the eligible
are also often eligible for supplemental CDBG funding for
Indian population.
disaster recovery (CDBG-DR).
Each area ONAP uses its allocation to award grants to
In response to the COVID-19 pandemic, for example, the
eligible entities in its jurisdiction. The six area ONAPs are:
Coronavirus Aid, Relief, and Economic Security (CARES)
Act (P.L. 116-136, Title XII), enacted on March 27, 2020,
 Alaska;
appropriated $300 million for HUD’s Native American
Programs account, of which one-third, or $100 million, was
 Eastern Woodlands (Alabama, Connecticut, Florida,
set-aside for the ICDBG program, in what became known
Iowa, Massachusetts, Maine, Michigan, Minnesota,
as ICDBG-CARES. HUD allocated the funding through the
Mississippi, North Carolina, New York, Rhode Island,
noncompetitive Imminent Threats grant program to address
South Carolina, Virginia, and Wisconsin);
community and economic impacts of the pandemic. Under
this structure, eligible applicants received funds on a first
 Northern Plains (Colorado, Montana, North Dakota,
come, first-served basis. HUD awarded ICDBG-CARES
Nebraska, South Dakota, Utah, and Wyoming);
grants to 96 tribal entities, in six rounds of funding.
 Northwest (Idaho, Oregon, and Washington);
Additionally, the American Rescue Plan Act of 2021,
enacted on March 11, 2021, included $280 million in
 Southern Plains (Kansas, Louisiana, Missouri,
supplemental ICDBG funds (ICDBG-ARP), to prepare for
Oklahoma, and Texas); and
and respond to imminent threats posed by the coronavirus
(P.L. 117-2, Title XI, Sec. 11003). HUD awarded ICDBG-
 Southwest (Arizona, California, New Mexico, and
ARP in a phased approach, which prioritized eligible
Nevada).
grantees that applied for ICDBG-CARES funding but
received partial funding or no funding. Subsequent rounds
The ONAP headquarters and the area ONAP in Hawaii do
of funding were made available for eligible applicants that
not receive ICDBG allocations for distribution. Native
had not applied for ICDBG-CARES funds, and later for
Hawaiian communities are not eligible for ICDBG funding.
ICDBG-CARES grantees. HUD announced ICDBG-ARP
Hawaii’s Department of Hawaiian Home Lands receives
funding awards and amounts in four rounds between
dedicated funding for housing activities through HUD’s
November 2021 and March 2022. In total, HUD made
Native Hawaiian Housing Block Grant program. Table 2
ICDBG-ARP awards to 240 grantees, over the course of
shows recent area ONAP allocations.
four rounds.
Joseph V. Jaroscak, Analyst in Economic Development
Policy
IF11749

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The Indian Community Development Block Grant (ICDBG) Program: An Overview

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