Biden Proposes $341 Million for CDFI Program
The White House began releasing budget requests for the next fiscal year, which included a funding proposal for the CDFI program. Learn more.
White House begins releasing budget requests for next fiscal year.
The Biden Administration on Thursday proposed providing $341 million for the CDFI program in FY24—a $17 million increase over the current level.
The 5% increase in funding is contained in the president’s FY24 budget requests, which the administration began rolling out on Thursday. The budget also calls for a $10 million subsidy for the CDFI Fund’s Bond Guarantee Program.
Additional budget information is expected in the coming days. The details released Thursday do not mention the NCUA’s Community Development Revolving Loan Fund in addition to many other programs. Those initiatives often are discussed in supplemental material, with the administration expected to release more information shortly.
How Much Money Were Advocates Calling For?
The $341 million for the CDFI program is far less than advocates had wanted. For instance, the CDFI Coalition last year pushed for $1 billion for the program in FY23. And during CUNA’s Governmental Affairs Conference last week, some advocates called for $1 billion, but not less than $500 million for the upcoming year.
Credit Union Tax Exemption
And while the FY24 budget proposal contains many tax provisions, none of them would affect the credit union tax exemption—always a concern for credit union advocates.
What Happens Next?
The president’s budget represents the first step in the FY24 funding process and is only a reflection of the administration’s priorities. Congress often ignores the presidential budget, with a longstanding tradition of some members declaring it “dead on arrival.”