CSBG Corner

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The 1964 Economic Opportunity Act created the Community Action Program, which was administered through the Office of Economic Opportunity (OEO), along with other important programs, such as Head Start, Legal Services and Job Corps. OEO was renamed as the Community Services Administration in 1975. In 1981, Congress enacted the Omnibus Budget Reconciliation Act, which consolidated programs authorized under the Economic Opportunity Act under the new Community Services Block Grant or CSBG.

CSBG is the only federal program with the explicit and overarching goal of reducing poverty, regardless of its cause. CSBG pursues this goal by providing critical funding to the nationwide network of local Community Action Agencies and supporting their locally-driven comprehensive approach to fighting poverty.

What is Community Action? What makes it unique?

• CAAs are trusted local organizations with long-standing relationships and deep roots in the community. They give a voice to local residents and community stakeholders in decisions that affect them. They are a key partner and resource for local governments and private entities seeking innovative and effective ways to address poverty. Their flexibility and close ties in the community make them uniquely able to respond quickly to emergencies and urgent needs.
• Each CAA is governed by a broadly representative “tripartite” board, with mandatory representation from the low-income community, local elected officials and a wide array of community stakeholders. These include businesses, schools, faith-based organizations and numerous others with the capacity to create jobs and opportunities for low-income individuals and families.
• Each CAA conducts a comprehensive assessment of local community needs that guides planning and decisions about programs and services. The assessment identifies local causes of poverty and barriers to self-sufficiency, community assets and unmet needs. CAAs do not operate one particular type of program or serve one particular age group. Community Action is holistic and comprehensive in responding to the full range of challenges facing low-income people and communities.
• Each CAA operates through partnerships with numerous public and private sector organizations, so that local communities benefit from a broad but coordinated range of resources and initiatives. Resources also include thousands of volunteers who believe in Community Action and donate their time and talent to their local CAA.

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Virtually every county in the United States has a Community Action Agency (CAA), a local organization charged by the federal government with the sweeping mission of fighting poverty. About 1,000 such agencies exist nationwide. They provide stability for low-income individuals and families and even more importantly, they create economic opportunities in the communities where people live. CAAs address local causes and conditions of poverty with input from the entire community, including the low-income people they serve. They are distinct from other local organizations in critically important ways. 

What is the Community Services Block Grant? Why is it critical to Community Action?

The Community Services Block Grant (CSBG) was enacted in 1981 to support the nationwide network of Community Action Agencies through block grants to states that are passed through to local agencies. CSBG is the only federal program with the explicit and overarching goal of reducing poverty at the local level, regardless of its cause. The federal government allots block grants to states, which retain a small portion for oversight, monitoring, technical assistance and statewide initiatives. The majority of funds – at least 90% of each state’s allotment – must be passed through to local agencies. CAAs receive and administer other resources in addition to these CSBG grants, which typically form a small component of their overall budgets. CSBG was funded in FY2021 at $745 million. Why is CSBG essential to Community Action?

• The CSBG Act defines, supports and enforces the unique features of Community Action. Local agencies must meet federal requirements to be formally designated as a CAA and to receive CSBG funds. These requirements ensure that low-income individuals and others in the community have a voice in planning and overseeing local programs, that activities and services respond to documented needs and that resources are coordinated and used well.
• CSBG is the only dedicated funding source that supports core Community Action functions. CAAs are highly successful at leveraging their small CSBG allotments to obtain a wide array of other public and private resources for their communities. This success results from their formal designation as Community Action Agencies and from the extensive efforts of their staff and board members in conducting needs assessments, identifying resources, preparing grant applications and coordinating with community partners. CSBG funds support these critical activities, along with basic agency operations and infrastructure. Notably, the Urban Institute reported in 2012 that CAAs are “good stewards of their financial resources” and that CAA administrative costs are relatively low compared to other nonprofits.
• CSBG provides uniquely flexible funds to support gap-filling activities that address unmet needs, innovative efforts to combat poverty and promote self-sufficiency and rapid responses to unforeseen crises. CAAs identify causes and conditions of poverty that may not be addressed by an existing program or for which existing resources are not adequate. CSBG funds are used alone and in combination with other resources to support and strengthen important anti-poverty initiatives that would not be possible otherwise.

*This information comes from the National Community Action Foundations’ Introduction to Community Action and the Community Services Block Grant.