Legislative hearing on Community Service Block Grant highlights Rural CAP services, metrics and questions on oversight

The House Community and Regional Affairs Committee held its required legislative hearing on the Community Service Block Grant (CSBG), hearing presentations from the Department of Commerce, Community and Economic Development’s Division of Community and Regional Affairs (DCRA) and the Rural Alaska Community Action Program (Rural CAP).

"Community Service Block Grant funds are allocated to the department from US Department of Health and Human Services," DCRA grant administrator Pauline Born told the committee. DCRA and Rural CAP officials said they expect roughly $2.3 million to $2.5 million in federal CSBG funding for federal fiscal year 2026, subject to change.

DCRA Director Sandra Moller summarized the program purpose and the federal requirement: "The purpose of the CSBG program is to alleviate the causes and conditions of poverty ... 42 U.S.C. §9908 requires states to hold at least one legislative hearing every three years in conjunction with the development of the state plan," she said. DCRA explained that federal rules generally require 95% of CSBG funds be granted to the designated community action agency in the state and that the state may retain up to 5% for administrative costs.

Teal Smith, executive director of Rural CAP, described Rural CAP’s statewide operations including three strategic priorities—housing, local leadership and capacity building, and workforce development—and highlighted fiscal 2024 results reported by the agency: 596 Alaskans obtained safe and affordable housing; 880 children in 21 communities received early childhood services; and 418 Alaskans received home improvements that improved health and safety. "Our mission is to empower low income Alaskans through advocacy education, affordable housing, and direct services that respect our unique values and cultures," Smith said.

Rural CAP’s chief development officer, Jasmine Boyle, explained how CSBG funds are used: the block grant is flexible core funding that supports continuity for many programs and can act as a rapid‑response resource when other funding streams fluctuate. Boyle said Rural CAP operates roughly 150 unique programs across the state and that CSBG is one of multiple federal and state funding streams blended to deliver services. "That is a chunk of flexible funding ... it is the glue that holds all of our other funding together," Boyle said.

Committee members pressed for measurable outcome data and clarity on the state’s role. Several lawmakers asked where performance measures are published; DCRA staff said the state plan and a fact sheet are on the DCRA website and that Rural CAP files a state plan with performance outcomes that the committee may review. DCRA and Rural CAP officials said Rural CAP conducts a biennial community needs assessment that informs program priorities and performance measures.

On funding sources, DCRA clarified that CSBG is fully federally funded and that the state retains up to 5% for administrative costs; Rural CAP receives separate state competitive grants for some programs, but the CSBG allocation itself does not require a state match. DCRA staff said the federal FY2026 state plan is due to HHS on August 29, 2025; DCRA and Rural CAP told the committee they will provide the committee a draft of the proposed FY2026 plan for review in July.

Ending

The committee accepted the presentations as its statutorily required CSBG hearing. Members asked for the Rural CAP four‑page report and the FY2025 state plan to be uploaded to the committee site and asked DCRA to circulate the draft FY2026 state plan for committee comment before the August federal filing deadline.