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Community Development Fund 

This funding opportunity provides financial support to small cities and rural counties in Texas for essential infrastructure projects like water systems, public facilities, and housing improvements.

$750,000
Forecasted
Recurring
Grant Description

The Texas Community Development Fund (CD Fund), administered by the Texas Department of Agriculture (TDA), is the largest funding category under the Texas Community Development Block Grant (TxCDBG) Program. This fund operates on a biennial cycle and distributes awards through a competitive application process across Texas' 24 state planning regions. The fund is structured to ensure equitable geographic allocation of resources, and unutilized funds may be reallocated to other regions based on a set formula to maximize the number of awards issued. Primarily, the CD Fund supports infrastructure projects including public facilities, water and wastewater systems, street and drainage improvements, and housing activities. However, the program allows for a broad range of eligible activities depending on community needs and regional priorities, as further outlined in the annual Action Plan and respective application guidance documents. Eligible applicants include nonentitlement general-purpose units of local government—specifically cities and counties that are not part of or designated for federal CDBG entitlement funding. Eligibility extends to cities with populations under 50,000 that are not central cities in metropolitan statistical areas and are not participants in urban county programs. Counties must also be primarily rural, with a general population of fewer than 200,000 within nonentitlement cities and unincorporated areas. The maximum award available under this program is $750,000 per project. Each planning region receives a designated allocation, and applications are evaluated based on a scoring framework detailed in the Community Development Fund Application Guide and governed by the TxCDBG Action Plan. Applicants must adhere to all published guidelines and use supporting documents such as the engineer's certification form and beneficiary documentation to validate the need and impact of the proposed project. The full application process consists of multiple phases. Only invited applicants may proceed to submit a Phase 2 project application, which must be submitted by April 2, 2025. Detailed guidance for both the first and second rounds of the 2025–2026 cycle is available via documents published on January 10, 2025, and May 20, 2025. Past application scores and regional allocations are also accessible for reference. For assistance, applicants are advised to contact the Texas Department of Agriculture. While the site notes general contact through the “(800) Tell-TDA” phone line, specific staff contacts for technical support are not provided in the available guidance and may require direct inquiry via the TDA’s eServices or support forms.

Funding Details

Award Range

Not specified - $750,000

Total Program Funding

Not specified

Number of Awards

Not specified

Matching Requirement

No

Additional Details

Funds are allocated by region based on formula-driven criteria. Unused or deobligated funds may be redistributed to maximize award distribution. Specific uses include public facilities and infrastructure improvement.

Eligibility

Eligible Applicants

City or township governments
County governments

Additional Requirements

Eligible applicants are nonentitlement cities and counties that are not part of urban county programs or federally designated CDBG entitlement areas. Cities must be under 50,000 in population, not central cities in MSAs, and not under urban county agreements. Counties must have nonentitlement populations under 200,000.

Geographic Eligibility

All

Expert Tips

Use the application guide, scoring appendices, and engineer’s certification form for full compliance. Confirm eligibility based on the nonentitlement criteria. Ensure complete documentation of beneficiaries.

Key Dates

Application Opens

January 1, 2027

Application Closes

April 2, 2027

Contact Information

Grantor

Texas Department of Agriculture (TDA)

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Categories
Community Development
Housing
Infrastructure
Environment