US HB6623

Revises the Community Development Block Grant (CDBG) allocation formula to use four weighted factors: poverty rate in families and elderly households (counted 5x), pre-1950 housing occupied by households in poverty (counted 3x), female-headed households with children under 18, and housing overcrowding

Applies the new formula uniformly to metropolitan cities, urban counties, and nonentitlement areas within states, replacing the previous dual-formula system

Authorizes $3.425 billion for CDBG funding in fiscal year 2026, with annual adjustments tied to the Consumer Price Index for All Urban Consumers (CPI-U) through fiscal year 2029

Simplifies the definition of "poverty" to mean income not exceeding the poverty level, eliminating several existing statutory definitions