Happy Leap Year, and welcome back to Disaster Discourse Monthly!
This year, we are changing our format to feature the expertise of our leadership. Every quarter, we’ll share insights from Brock Long, former FEMA Administrator, and Stan Gimont, who joined Hagerty last year after 32 years at HUD. Today at Disaster Discourse Monthly, Stan discusses the CDBG-DR process.
Is it Finally Time to Permanently Authorize CDBG-DR?
By: Stan Gimont
During my tenure managing HUD’s Community Development Block Grant Disaster Recovery (CDBG-DR) program between 2008 and 2019, I had regular contact with four HUD secretaries – Steve Preston, Shaun Donovan, Julian Castro, and Ben Carson. Each of them asked a variation of this question:
How can we speed up the CDBG-DR process to better assist disaster-impacted communities and households with their long-term recovery?
This remains a critical question as almost $40 billion has been appropriated for CDBG-DR since September 2017, with the prospect of additional funding exemplified by the House of Representatives’ approval on February 7, 2020, of an additional $3.3 billion for CDBG-DR.
My experience demonstrates that it is far easier to diagnose than solve the underlying causes. The two primary causes for drawn out launch times associated with CDBG-DR are:
- A lack of permanent statutory authorization; and
- The absence of timely and predictable funding mechanism.
To make CDBG-DR a more effective component of the Federal government’s long-term recovery efforts, addressing these points is critical to establishing a strong foundation and reduce friction points that often delay the flow of funds to disaster recovery needs. Until recently, Congress has not focused intently on CDBG-DR authorization concerns as the legislative action has been almost exclusively via the appropriations process. However, the time is ripe for a larger discussion on the Federal government’s overall response to long-term recovery needs and, more specifically, the role of CDBG-DR in that effort.
First, the Trump Administration’s FY 2021 budget, released in early February, signals a desire “to work with the Congress to comprehensively reform and redesign how the Federal Government supports states, communities, and disaster survivors after large-scale catastrophic events.” The goal is to create a coherent process “that helps communities recover faster, is less confusing, improves outcomes, and protects taxpayer dollars.” A full discussion of Federal disaster recovery efforts would be welcomed in many quarters as opposed to piecemeal efforts that attempt to fine-tune discreet problems.
The Trump Administration’s FY 2021 budget signals a desire to “work with the Congress to comprehensively reform and redesign how the Federal government supports states, communities, and disaster survivors after large-scale catastrophic events.”
Within this discussion, one of the most significant topics will be the fate and role of CDBG-DR. While the Trump Administration has sought CDBG-DR funding on only one occasion and has generally opposed the program, the House of Representatives has staked out a supportive position for CDBG-DR by approving the Reforming Disaster Recovery Act (HR 3702), in November 2019. This bill would permanently append CDBG-DR provisions to the basic CDBG statute and incorporates many of the operating norms developed by HUD since 2001.
In the Senate, no action has been taken on HR 3702. Sen. Brian Schatz (D-HI) has proffered a bill (S. 2301) which has much in common with the House-passed legislation, but it also takes different approaches on various points. Several other Senators are rumored to be working on their own CDBG-DR bills, but little is known about the approaches that they may ultimately take or the opportunities for collaboration. Given the tight legislative calendar due to the election cycle, it will be interesting to see if the Senate Banking Committee opts to hold a hearing on CDBG-DR issues as they have not done so since focusing on Superstorm Sandy recovery in 2014.
In the Senate, no action has been taken on HR 3702. Sen. Brian Schatz (D-HI) has proffered a bill (S. 2301) which has much in common with the House-passed legislation, but it also takes different approaches on various points. Several other Senators are rumored to be working on their own CDBG-DR bills, but little is known about the approaches that they may ultimately take or the opportunities for collaboration. Given the tight legislative calendar due to the election cycle, it will be interesting to see if the Senate Banking Committee opts to hold a hearing on CDBG-DR issues as they have not done so since focusing on Superstorm Sandy recovery in 2014.
The Reforming Disaster Recovery Act would allow HUD to issue permanent regulations associated with statutory waivers – a highly flexible tool and an excellent step towards creating a more durable CDBG-DR framework.
Concurrently, it directs HUD to issue permanent regulations for CDBG-DR and enables HUD to apply the statutory waiver and alternative requirement authority that has routinely been provided via CDBG-DR appropriations language. This waiver authority sets CDBG-DR apart as a highly flexible tool adaptable to grantee needs, and the absence of permanent regulations has been a significant impediment to a more durable CDBG-DR framework.
Ultimately, making CDBG-DR go faster will also involve better pre-disaster planning, process improvements by HUD and grantees, and better intergovernmental coordination.
A few points in closing:
First, statutory fixes are not the end all. There are a host of HUD and grantee implementation considerations that must also be addressed to accelerate recovery efforts.
Second, if these bills continue to advance, each should be evaluated from the perspective of whether all included provisions will accelerate recovery, with further legislative changes made where necessary and appropriate.
Third, looming in the background is other legislation (HR 1311) that would enable FEMA to begin to address many of the long-term recovery needs that CDBG-DR targets. This proposal brings into the focus the question of FEMA’s desire and capacity to take on additional recovery responsibilities. CDBG-DR has real value for communities with extensive long-term recovery needs arising from major disasters. In order for that value to be maximized, the program must move more rapidly.
Permanent statutory authorization is the first step in that direction followed by a predictable regulatory framework being vetted through the lens of how recovery can be expedited.
Interest in addressing this need is growing, and those with a desire to promote effective long-term recovery should consider how best to shape the outcome in a manner that produces a positive result for disaster impacted communities in the future. 
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