Which federal agency administers Community Development Block Grants for entitlement communities?

The correct answer is the Department of Housing and Urban Development (HUD) because it is the federal agency specifically responsible for overseeing the Community Development Block Grant (CDBG) program. This program provides federal funds to entitlement communities to support a variety of community development activities, including housing and economic development initiatives.

HUD's role involves the administration, distribution, and regulation of these funds, ensuring that they align with federal laws and local needs. By facilitating local governments in addressing issues like poverty, infrastructure, and housing, HUD plays a crucial part in promoting community development and revitalization.

The other agencies mentioned do not have this specific mandate. FEMA is focused on disaster response and recovery rather than community development funding; DOT's primary function is related to transportation infrastructure; and EPA is concerned with environmental regulations and policies rather than direct community block grants. Thus, HUD stands out as the dedicated agency managing the CDBG program for entitlement communities.