The Estimated Economic Impact of CDBG in Small and Rural Communities in Texas

ARCIT commissioned an independent economic impact analysis of the US Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) Program on the Texas economy from 2012 – 2016.

The report found local small and rural communities in Texas would have an overwhelming financial burden if they tried to complete much-needed core infrastructure projects, such as water and sewer system improvements, without CDBG funding opportunities and only with local revenues and non-federal resources.  For example, the report demonstrates that if CDBG funded infrastructure improvements, made from 2012 to 2016, were instead funded by local government using bonds, the total debt service costs would be 165% more than the CDBG expenditure for the same activities.

The study shows the CDBG program remains an effective means to accomplish many infrastructure needs that still exist in small and rural communities in Texas.