The big problem here is that "We help fund Meals on Wheels" is how the government sells the CDBG program, but how it actually operates in the cities and communities that get the money is far different. The CDBG program is chock full of cronyism and corruption and should be eliminated. Much like the corrupt city redevelopment agencies, what actually ends up happening is that this money gets funneled by politicians to friends with connections for various projects that aren't really about helping the poor at all...
The money often is not going to Meals on Wheels or even to the neediest communities. As a Reason Foundation analysis also from 2013 shows, wealthier communities get the larger chunks of the money, particularly counties that—what a coincidence!—are in proximity to Washington, D.C.
Here's an example of how this grant money is actually used:
In 2011, Comstock Township, Michigan decided to grant Bell's Brewery $220,000 in CDBG funds
to help pay for a two-year expansion project. This is an even more blatant crony capitalist use of community development subsidies. The brewery benefits from the government subsidies at taxpayers' expense, but it also benefits from a financial advantage over competing breweries
Tad DeHaven has a list of some of the projects that have snagged CDBG funds instead of things that actually help the poor:
$588,000 for a marina in Alexandria, Lousiana
$245,000 for the expansion of an art museum in Allentown, Pennsylvania
$147,000 for a canopy walk at the Atlanta Botanical Gardens in Georgia
$196,000 for expanding the Calvin Coolidge State historic site in Vermont
$294,000 for a community recreational facility in New Haven, Connecticut
$196,000 for the construction of an auditorium in Casper, Wyoming
$441,000 to replace a county exposition center in Umatilla, Oregon
$98,000 for the Pearl Fincher Museum of Fine Arts in Spring, Texas
$245,000 for renovations to awnings at a historical market in Roanoke, Virginia
$294,000 for the development of an educational program at the Houston Zoo in Texas
DeHaven also noted how a good chunk of the funds of the program get siphoned out due to administrative costs. A good quarter of the funding goes to the various multi-level government bureaucracies to actually operate the grant process. One of the biggest beneficiaries of the CDBG program are the people who operate the program.