The Office of Community Services has released Information Memorandum 109 - Application for Fiscal Year (FY) 2009 CSBG American Recovery and Reinvestment Act (Recovery Act) Funds.  The purpose of IM109 is to provide guidance on application procedures, spending and reporting requirements for Recovery Act Funds.

Excerpts from IM109:

Background
On February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act (Recovery Act) of 2009.  This legislation authorized “…supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization….” [Public Law 111-5]   The Recovery Act provides for $1 billion in additional funds to the Community Services Block Grant program for Fiscal Year (FY) 2009.  States, the District of Columbia, the Commonwealth of Puerto Rico and U.S. Territories, hereafter referred to as States, have until September 30, 2010, to expend the additional funds.

The specific language from the Recovery Act related to the Community Services Block Grant states: 

$1,000,000,000 for carrying out activities under sections 674 through 679 of the Community Services Block Grant Act, of which no part shall be subject to section 674(b)(3) of such Act: Provided, That notwithstanding section 675C(a)(1) and 675C(b) of such Act 1 percent of the funds made available to each State from this additional amount shall be used for benefits enrollment coordination activities relating to the identification and enrollment of eligible individuals and families in Federal, State, and local benefit programs: Provided further, That all funds remaining available to a State from this additional amount after application of the previous proviso shall be distributed to eligible entities as defined in section 673(1) of such Act: Provided further, That for services furnished under such Act during fiscal years 2009 and 2010, States may apply the last sentence of section 673(2) of such Act by substituting "200 percent" for "125 percent."

States and local entities that provide services with CSBG funds including migrant and seasonal farm worker organizations (“eligible entities”) are encouraged to focus their efforts on creating sustainable economic resources in communities.  States should help to ensure that eligible entities: 1) provide a wide range of innovative employment-related services and activities tailored to the specific needs of their community; 2) use funds in a manner that meets the short-term and long-term economic and employment needs of individuals, families and communities; and 3) make meaningful and measurable progress toward the reform goals of the Recovery Act with special attention to creating and sustaining economic growth and employment opportunities.

Under the CSBG program, eligible entities use funds to provide services and activities addressing employment, education, better use of available income, housing, nutrition, emergency services and/or health to combat the central causes of poverty.  Such services continue to be supportable under the CSBG Recovery Act funds.

Use of Funds
Recovery Act funds may be used “…for carrying out activities under sections 674 through 679 of the Community Services Block Grant Act …” which includes the CSBG program assurances as stated in Section 676(b) of the CSBG Act. States are to ensure that “…the use of these funds is consistent with the laws and procedures applicable to the State, both with regard to the States’ own provisions for obligations and expenditures under State policies, and in accordance with applicable Federal regulations.”

Under the regular CSBG program, eligible entities use funds to provide services and activities addressing employment, education, better use of available income, housing, nutrition, emergency services and/or health to combat the central causes of poverty.  Such services continue to be supportable under the CSBG Recovery Act fund.  In recognition of the intent of Recovery Act funds, States should encourage their eligible entities to support employment-related services and activities that create and sustain economic growth.

It is important to note that unlike the regular CSBG program, the Recovery Act does not allow for State expenditures on administrative costs and statewide discretionary activities.  The Act does, however, require States to reserve one percent of their grant for benefits enrollment  coordination activities relating to the identification and enrollment of eligible  individuals and families in Federal, State, and local benefit programs.  The block grant gives States flexibility to administer these benefit enrollment activities in a manner that best meets the needs of individuals, families and communities in their State.

Income Eligibility Requirements

The Recovery Act allows States and the eligible entities that administer the CSBG program at the local level to increase individual eligibility for services furnished by the program during fiscal years 2009 and 2010 up to 200 percent of the official poverty guidelines as set by the U.S. Department of Health and Human Services. Current poverty guidelines can be accessed at this website location: http://aspe.hhs.gov/POVERTY/09fedreg.shtml.  This eligibility adjustment reflects an increase from 125 percent of poverty as provided in Section 673(2) of the CSG Act, and applies to all CSBG services furnished by States and eligible entities during FY 2009 and 2010, including those provided pursuant to other CSBG appropriations.

Go to CSBG IM109