Overview

• Cuts off federal Community Development Block Grant (CDBG) funding to local governments that help undocumented immigrants
• Applies to grants from fiscal year 2024 onward
• Currently in House Financial Services Committee (introduced January 3, 2025)

Who does this affect?

• Main groups: City and state governments, undocumented immigrants, immigrant communities
• Who benefits/loses: Local governments lose CDBG funding if they assist undocumented immigrants with housing or community development programs; undocumented immigrants lose access to local housing assistance funded by these grants
• Teen impact score: 5/10 (indirect impact via community resources—CDBG funds support local parks, libraries, housing rehabilitation that teens use through their communities)

What This Bill Does

• Amends 42 U.S.C. 5305 to ban CDBG funds from assisting anyone who is neither a U.S. national nor lawful permanent resident (as defined in Immigration and Nationality Act section 101(a)(20))
• Effective for all grants made in fiscal year 2024 or later
• Amends 42 U.S.C. 5303 to prohibit HUD Secretary from awarding CDBG grants to states, local governments, or tribes that run ANY housing or community development program helping undocumented immigrants
• Broader restriction: Even if local programs use separate (non-federal) funding to help undocumented immigrants, that government becomes ineligible for all CDBG grants

Legislative Status

• Status: Introduced in House, referred to Financial Services Committee
• No committee action yet

In short

• Blocks federal community development money from helping undocumented immigrants
• Cities and states must choose: help undocumented immigrants with housing programs OR keep receiving federal CDBG grants
• Applies to grants starting in fiscal year 2024
• Creates all-or-nothing choice for local governments: stop all assistance to undocumented immigrants or lose federal funding

Why should I care?

Community Development Block Grants support local projects like park improvements, library renovations, affordable housing repairs, and infrastructure upgrades in neighborhoods. If local governments lose this federal funding because they help undocumented immigrants, community resources could shrink. Cities might face tough budget choices: cut services everyone uses or stop programs helping immigrant families. The bill ties immigration policy to community development funding, affecting what services local governments can afford and who qualifies for help.