This bill significantly amends the Housing and Community Development Act of 1974 by revising the formula for allocating Community Development Block Grant (CDBG) funds. For metropolitan cities and urban counties, the new formula determines allocations based on the average ratio of several factors within their areas compared to all metropolitan areas. These factors include the poverty rate per person in families and elderly households, the extent of female-headed households with children under 18, the extent of housing constructed before 1950 and occupied by a household in poverty, and the extent of housing overcrowding . In calculating this average, the poverty rate factor is weighted five times, and the old housing occupied by poor households factor is weighted three times, while the other two factors are counted once. A similar revised formula is applied to determine allocations for states, specifically for their nonentitlement areas, using the same weighted criteria. This aims to direct funds more precisely to areas with greater need based on these socioeconomic and housing indicators. Furthermore, the bill simplifies the definition of "poverty" and renumbers other definitions within the Act. It also authorizes specific appropriations for CDBG assistance, setting an initial amount of $3.425 billion for fiscal year 2026. This authorized amount will be adjusted annually for fiscal years 2026 through 2029 based on increases in the Consumer Price Index for All Urban Consumers (CPI-U).