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Public services

Federal funding for public services

Public services such as utility assistance, transportation benefits, and case management services can help low-income households meet their immediate needs and achieve greater financial stability.

Cross-promoting housing and public service programs. Public service and housing assistance programs often target the same population of low- and moderate-income households. Jurisdictions can consider ways to direct households seeking support from one service to other complementary services. For example, low-income renters who have applied for emergency rental assistance to avoid eviction may also benefit from utility and internet assistance. Offering households who benefit from one service information about other services or allowing them to apply for those additional services immediately can make it easier for them to access these resources promptly.

Using State and Local Fiscal Recovery Funds (SLFRF) before they expire. SLFRF is a temporary program established through the American Rescue Plan Act. The program is highly flexible and can be used for nearly any service designed to respond to the impacts of the COVID-19 pandemic, including food and cash assistance, childcare subsidies, and health services. However, jurisdictions must expend funds by the end of 2026. Localities should consider how best to use these funds to meet community needs and fill funding gaps. They may also need a plan for ramping down programs funded through SLFRF as the expenditure deadline approaches.  

Using the Community Development Block Grant Program (CDBG) for public services. While CDBG can fund services such as health and childcare, public service expenditures are capped at 15 percent of the total allocation. In addition, certain types of “income payments,” including rent subsidies and food assistance may only be provided to recipients for three months. Jurisdictions interested in using CDBG for public services should prioritize them based on community needs and the availability of other types of funding. 

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