Under President Ford, in 1974, the Community Services Amendments were passed.  OEO was dismantled and a "new" Community Services Administration (CSA) replaced it.  The employees remained and continued to administer the programs.  Community action had found a new home in the federal government.

From 1974 to 1981, CSA continued to fund CAAs.  CAAs continued to help communities and neighborhoods to initiate self-help projects such as gardening, solar greenhouses, and housing rehabilitation.  They additionally helped create and support federally funded senior centers and congregate meal sites.  Home weatherization and energy crisis programs were initiated in the 1970s.

In the late 1070s, under prodding from Congress, the Administration of President Carter initiated a large-scale effort to strengthen the role and management systems of both CSA and the CAAs.  This resurgence of "local spirit and leadership came to a quick end with passage of the Omnibus Budget and Reconciliation Act of 1981.

In September 1981, Congress provided that all CAAs designated and recognized by CSA were eligible to be funded under the 90 percent pass-through requirement of the Community Services Block Grant.  Congress also rescinded the EOA and the Green Amendment, eliminating the procedures and regulations for designation and recognition of CAAs.