POLITICAL HQ
eliminationcritical impact Budget PDF p. 27

Community Services Block Grant

(CSBG)

Department of Health and Human Services
Proposed Cut
$775M
% Reduction
100.0%
Action Type
elimination
Who Is Served

1,000+ Community Action Agencies; 9–10 million individuals in 5.2 million households

Summary

The Community Services Block Grant (CSBG) sends federal money to a nationwide network of about 1,000 local Community Action Agencies, which use it to fund anti-poverty services like housing help, job training, energy assistance, and emergency aid. The FY2027 budget proposes eliminating CSBG entirely, cutting its full $775 million in funding — a 100% reduction — because the administration says Community Action Agencies are ineffective and anti-poverty services should be restructured.

Who Is Affected

CSBG currently supports roughly 1,000 Community Action Agencies operating in about 99% of U.S. counties, which serve an estimated 9 to 10 million people in 5.2 million low-income households nationwide. Local examples show the scale of impact — one Texas county alone (Hidalgo County) receives about $2 million a year in CSBG funds, with neighboring counties receiving $1 million and $700,000, money that supports disaster response, domestic violence victim services, and adult education programs.

What this cut would actually mean

If CSBG is eliminated, thousands of local Community Action Agencies would lose federal money that often underwrites their core operations, meaning many would have to cut staff, reduce hours, or close programs such as emergency utility and housing assistance, job training, and adult education services. Because CSBG funds are frequently combined with other funding streams to keep agency doors open, losing this grant could force some agencies to shut down entirely, leaving low-income families in both rural and urban communities with fewer or no local options for crisis help during emergencies like natural disasters or job loss.

Sources

Administration's Stated Rationale

Community Action Agencies considered ineffective; anti-poverty services to be restructured.