Public Service Expenditure Cap Modification Act
This bill waives for FY2023 a cap on the amount that recipients of Community Development Block Grant funds may spend on public service activities (e.g., those concerned with employment, crime prevention, childcare, and health). Current law prohibits recipients from expending more than 15% of funds on such activities.
The bill also directs the Department of Housing and Urban Development to allow recipients to provide emergency grant payments on behalf of eligible families for up to six months. Currently, these payments, which provide assistance with housing, utilities, or other subsistence support, are limited to three months.
To waive certain requirements for Community Development Block Grant 
 amounts used for public services activities to prevent, prepare for, 
and respond to homelessness and emergency rental assistance needs, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Service Expenditure Cap 
Modification Act''.

SEC. 2. PUBLIC SERVICE EXPENDITURE CAP.

    (a) In General.--Section 105 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305) is amended by adding at the 
end the following:
    ``(i) Waiver of Requirement.--The requirement described in 
subsection (a)(8) shall not apply to amounts appropriated for fiscal 
year 2023 used for public services activities to prevent, prepare for, 
and respond to homelessness and emergency rental assistance needs.''.
    (b) Revision of Rule.--The Secretary of Housing and Urban 
Development shall, not later than 90 days after the date of the 
enactment of this section, issue a rule that revises section 570.207 of 
title 24 of the Code of Federal Regulations to exclude emergency grant 
payments made over a period of up to 6 consecutive months to the 
provider of such items or services on behalf of an individual or family 
from the meaning of the term ``income payments''.
                                 <all>
Public Service Expenditure Cap Modification Act
To waive certain requirements for Community Development Block Grant amounts used for public services activities to prevent, prepare for, and respond to homelessness and emergency rental assistance needs, and for other purposes.
Public Service Expenditure Cap Modification Act
Rep. Espaillat, Adriano