Overview
Title
To amend the Housing and Community Development Act of 1974 to abolish certain grants for community development, and for other purposes.
ELI5 AI
H.R. 1133 is a rule change that would stop some types of money from being given to help communities build homes and improve neighborhoods. This change would start on October 1, 2025, and could make it harder for some areas to pay for these projects.
Summary AI
H.R. 1133 aims to change the Housing and Community Development Act of 1974 by eliminating certain community development grants. Introduced by Mr. McClintock and Mr. Weber, this bill would repeal Sections 101 and 103 through 122 of the Act, effectively ending those grants. The changes are set to take effect on October 1, 2025.
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AnalysisAI
General Summary of the Bill
The proposed legislation, identified as H.R. 1133, seeks to amend the Housing and Community Development Act of 1974. Its primary aim is to abolish specific grants related to community development, as detailed in Section 101 and Sections 103 through 122 of the original act. These changes are set to take effect on October 1, 2025. The bill is introduced by Mr. McClintock and Mr. Weber of Texas and currently stands referred to the Committee on Financial Services. The legislation also includes the shorthand title "Repeal Community Development Block Grants Act of 2025."
Significant Issues
Among the noteworthy issues is the potential impact on communities that currently depend on these grants for essential housing projects. With the abolition of the grants, there is a concern regarding underfunding, which could hinder community development efforts. Additionally, the bill lacks provisions for alternative funding mechanisms or support systems, which suggests potential financial hardships ahead for affected communities. The effective date of October 1, 2025, poses another issue as it might not provide adequate time for necessary adjustments or consultations with those impacted.
Importantly, the absence of a transitional plan to assess and manage the impacts is noted. Without evaluations or interim support, ongoing projects or commitments could face disruption. Furthermore, the wide-ranging repeal of sections could affect various stakeholders, contributing to uncertainty and potentially leading to legal disputes.
Broad Public Impact
The elimination of these grants could have a sweeping impact on the public, particularly those communities that rely heavily on funding from the Housing and Community Development Act of 1974. Critical housing and infrastructure projects might be underfunded or halted, which could subsequently lead to broader social and economic ramifications. The uncertainty surrounding the abolition could exacerbate challenges in maintaining and developing community infrastructure and housing.
Impact on Specific Stakeholders
For local governments and entities that depend on these grants, the bill may lead to significant financial strain and operational challenges. These stakeholders might struggle to find alternative funding sources to replace the grants set for repeal. Furthermore, given the short time frame before the changes take effect, these entities may face hurdles in planning and implementing contingency plans.
Conversely, those advocating for reduced federal spending in community development might view this bill positively, seeing it as a step towards fiscally conservative governance. However, without clear alternatives or support systems, the benefits of reduced spending must be weighed against the potential harm to community welfare and economic stability.
Overall, the legislation presents significant changes that carry potential benefits and drawbacks, impacting a wide range of stakeholders across different facets of society.
Issues
The abolition of grants under Section 2 could have significant impacts on communities that rely on funding from the Housing and Community Development Act of 1974, potentially leading to underfunding of critical housing projects.
Section 2 of the bill does not specify alternative funding mechanisms or support systems to mitigate the impact of grant abolition on affected communities, which might cause financial distress and hinder community development efforts.
The effective date set for October 1, 2025 in Section 2 might not provide sufficient time for adjustment and consultation with impacted entities, potentially causing disruption to ongoing housing and community development projects.
There is no mention of a transitional plan or evaluation in Section 2 to assess the impacts of the repeal on ongoing projects or commitments tied to the grants being abolished, which could lead to uncertainty and inefficiencies.
The broad repeal of sections within the housing act in Section 2 could affect multiple stakeholders without precise identification of who will be directly impacted, leading to uncertainty and potential legal challenges.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section provides the official short title of the law, which is "Repeal Community Development Block Grants Act of 2025".
2. Abolition of grants Read Opens in new tab
Summary AI
The section states that certain parts of the Housing and Community Development Act of 1974, specifically Section 101 and Sections 103 through 122, are being removed, meaning grants from these parts will no longer be available. This change is scheduled to go into effect on October 1, 2025.