The City of Port Arthur receives federal funds from the Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG), Community Development Block Grant Disaster Recovery (CDBG-DR), and the HOME Investment Partnerships (HOME) grant. The Grants Management division is tasked with administering these grant funds in accordance with the division's goals, federal regulations and input from the City Council.

Federal regulations allow for up to 15% of the City's annual Community Development Block Grant (CDBG) to be allocated to fund local public services.  

Agencies applying for CDBG must have or be in the process of receiving 501(c)(3) tax status from the Internal Revenue Service. Requests must be in the form of program specific operating funds which will serve primarily low income persons (at least 51%) residing in Port Arthur. Agencies accepting funds agree to comply with Federal Regulations 24 CFR 570 and (OMB) Circulars A-110, A-122, and A-133.