The 1,600 local governments that participate in the CLG program are eligible to apply to their State Historic Preservation Officer (SHPO) for annual funding. Each state is required to allocate ten percent of their annual Federal appropriation to CLG activities. On average, CLGs receive a total of approximately $3 million in HPF funds through subgrants from the states.

Types of activities that can be funded include: architectural, historical, archeological surveys; nominations to the National Register of Historic Places; staff work for historic preservation commissions; design guidelines and preservation plans; public outreach materials such as publications, videos, exhibits, and brochures; training for commission members and staff; and rehabilitation or restoration of National Register listed properties.

Funding decisions are made by the states, thus each program can have varied requirements and fund different types of eligible activities.