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.