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Kentucky panel adopts 2025 CDBG application, reviews minor guideline changes

2487036 · March 4, 2025
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Summary

The joint committee received an update from the Department for Local Government on proposed Fiscal Year 2025 Community Development Block Grant guidelines, approved the 2025 block grant application and Section 108 loan guarantee program as meeting statutory criteria, and discussed modest administrative changes and funding pre-allocations.

The joint Senate and House committees on state and local government heard an update from the Kentucky Department for Local Government on proposed guidelines for the federal Community Development Block Grant (CDBG) program for fiscal year 2025 and approved the 2025 block grant application and the Section 108 loan guarantee program as meeting the standards set out in KRS 45.353.

Department of Local Government Commissioner Matt Sawyers told the committees the department expects about $26,000,000 in CDBG funding for 2025 and laid out proposed pre-allocations and administrative guideline adjustments. “We’re here to update you on our guidelines for fiscal year 2025 to the Community Development Block Grant program administered by the Housing and Urban Development federal agency,” Sawyers said.

Why it matters: CDBG funds are a federal source routed through the state to smaller municipalities; how the state allocates them affects water and wastewater projects, community facilities, housing services, and recovery services across many rural and small urban jurisdictions.

Key…

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