Grant money to help communities

04.14.09
By Miriam Lamey

With the national unemployment rate climbing to 8.5 percent last month, a growing number of Americans are struggling to make home loan payments and manage mounting personal debt.

President Obama's American Recovery and Reinvestment Act (ARRA) was signed in February and aimed to jump-start the weak economy. A portion of the program allocates funding to help reduce poverty and support low-income families.

Recently, the U.S. Department of Health and Human Services (HHS) announced it will make $1 billion from the ARRA available to help Americans struggling in the current economy.

The funds, allocated to the Community Services Block Grant (CSBG) program, will be distributed this year. Each state will receive a specific amount to give to community-based groups that help Americans find jobs, stay out of poverty or rejuvenate low-income or depressed areas.

CSBG money supports community-based organizations that provide specific services to those who seek help. The grant money may help fund job training and placement, housing assistance programs and financial literacy programs. These initiatives teach people how to better manage their credit and recover from financial or job-related difficulties.

While the CSBG normally receives a budget of $700 million, the increase in allotted funds this year from the ARRA will "continue to strengthen cities and towns across America" according to HHS representative Jenny Backus.

Backus said the extra money also provides aid to Americans who are out of work. "With unemployment rates at a 25-year high, American workers need help now more than ever," she concluded.

These funds are the latest in a government effort to keep families in their homes. Together with other initiatives, such as the recently launched Making Home Affordable plan, some Americans may soon worry less about potential foreclosures or other mortgage issues.

More Economic Crisis Articles | News Home | Discuss in our Forum

Some stimulus funds being directed to struggling Americans