Community Development Block Grants are allocated to state and local jurisdictions. Entitlement communities, states, small cities, Indian tribes, and special purpose programs, including technical assistance, are eligible for block grants.
Spending is subject to federal regulations or state regulations under state-administered programs.
Program Funds to entitlement areas are allocated using formulas that consider the extent of poverty and extent of housing overcrowding. Entitlement cities develop their own programs and funding priorities. Activities that can be carried out with block grants include provision of public facilities and improvements such as water and sewer, streets, and neighborhood centers, and assistance to profit-motivated businesses to help with economic development activities.