Dreier Introduces Important Block Grant Legislation

September 10, 2003

WASHINGTON, DC - Congressman David Dreier (R-CA), Chairman of the House Rules Committee, introduced legislation this week that will allow the City and County of Los Angeles to continue to maximize the Community Development Block Grant (CDBG) money they receive from the federal government.

"The beauty of the block grant is that communities can use the funding for whatever they determine their most pressing needs to be," Dreier said. "Following the riots in 1992, federal block grants helped our area rebuild and renew itself. This legislation will ensure that Los Angeles will continue to have the flexibility they need to deal with crises and challenges unique to their own communities."

The CDBG program provides financial assistance to qualifying cities and counties for community development activities. Under current law, CDBG recipients can use up to 15 percent of allocated funds for public services, such as employment, crime prevention, child care, welfare, and education programs. In 1992, the City and County of Los Angeles received a waiver to increase the public service cap to 25 percent. The waiver has been continued since 1997 and is set to expire at the end of this fiscal year, September 30, 2003. The Public Services Flexibility Act of 2003, H.R. 3045, would make permanent the CDBG 25 percent public services cap for the City and County of Los Angeles. Doing so will give greater control to local government, enhance their ability to determine what programs are most deserving of federal seed money, and provide funding stability for long-term projects.

Local officials support Dreier's effort to give them this continued flexibility. "I wholeheartedly support Congressman Dreier's legislation which would permanently extend the Community Development Block Grant (CDBG) 25 percent cap on public social service activities for Los Angeles County and City," said Los Angeles County Supervisor Mike D. Antonovich. "Permanent extension of the CDBG cap would allow Los Angeles County the continued flexibility in administering many vital community programs such as parenting programs, graffiti removal services, domestic violence intervention services, and programs for at-risk-youth. The Dreier legislation is urgently needed as the cap will expire on September 30, 2003."