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Community Development Block Grant (CDBG) Program Turns 40

Wednesday, August 20, 2014

PIERRE, S.D. – The Community Development Block Grant (CDBG) program is celebrating 40 years this month, 27 of which have been spent under the South Dakota Governor’s Office of Economic Development (GOED).

In 1987, after deciding the program could increase economic development in South Dakota, Gov. George Mickelson transferred the Community Development Block Grant (CDBG) program from the Department of Environment and Natural Resources (DENR) to the GOED. While CDBG’s initial focus on water and wastewater projects has continued, the GOED has expanded its scope by also funding community building projects such as fire halls, senior centers, domestic abuse shelters, ambulance facilities, community centers, libraries, clinics and much more.

“The purpose of the CDBG program is to develop strong communities by providing grants that augment city and county infrastructure and provide opportunities to expand economic development efforts,” said Pat Costello, Commissioner, GOED. “The fact that the GOED has awarded a total of $291,542,455 for projects totaling $974,016,638 over the last 27 years is a source of great pride. Think of how many South Dakota residents those projects have affected. It just goes to show how much our state and community leaders care about investing in our residents, and it’s been that way for a long time.”

CDBG continues to be an important catalyst for economic growth, helping local officials leverage funds for community needs. According to the U.S. Department of Housing and Development (HUD), since the program’s inception in 1974, CDBG has invested $144 billion in communities nationwide. Each year, approximately 95 percent of funds are invested in activities that primarily benefit low and moderate income persons. The CDBG program is funded through HUD and administered by the GOED.

To learn more about the CDBG program, please visit

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Members of the media requesting more information should contact Natalie Likness at or (605) 773-3301.