Community Service Block Grant Overview

Community Services Block Grant (CSBG) is administered at the federal level through the US Department of Health and Services (HHS), Office of Community Services (OCS) and is the primary financial resource for the operation of Community Action Agencies (CAAs).

CSBG is a funding source, not a service program. CAAs determine locally how to use these funds to best address the needs of their communities.

Many of the other programs that CAAs operate have very limited funds for administration. CSBG is intentionally flexible with administration costs and allows CAAs to support program and staff cost where other funding sources fall short.

The premise of CSBG is to serve as a funding stream which builds the capacity of a stable statewide network that can act as the vehicle to provide direct services.

Michigan’s federal CSBG allocation averages about $23 million per year.

The Bureau is required to pass through 90% of its allocation directly to CAAs.

5% of the allocation is reserved for state administrative costs and another 5% is dedicated as state discretionary funding.

In Michigan, the state makes the discretionary funding available to CAAs for innovative projects.