Biden’s 2024 Budget Proposal Affects Several CDFI Priorities

Mary Scott Balys, Vice President of Public Policy, OFN

Proposed federal budget recommends $17 million increase for CDFI Fund over the current fiscal year

On March 9, President Biden released his budget blueprint for fiscal year 2024. The budget proposal recommends $341 million for the CDFI Fund, a $17 million increase over the current fiscal year. It also includes a $10 million appropriation for a credit subsidy for the Bond Guarantee Program. 

Beyond funding for the CDFI Fund, the budget blueprint touches on several other CDFI priorities. In tax policy, the budget would make the New Markets Tax Credit permanent, expand the Low Income Housing Tax Credit, and create a new Neighborhood Homes Tax Credit to support building or renovating affordable homes for homeownership.  

The budget increases funding for USDA’s multifamily housing programs, the HOME and CDBG programs at HUD, and the Minority Business Development Agency. The lending levels of the SBA’s 7(a), 504, Small Business Investment Company, and microloan programs are also increased in the proposal. 

The President’s budget is largely a messaging document that details the priorities of the Biden-Harris Administration. Congress will ultimately have to pass their own spending plan or a continuing resolution before the start of the fiscal year on October 1 to prevent a government shutdown.  

Republicans in the House of Representatives are committed to cutting spending and have indicated that they would like to draft their bills to FY 2022 levels, which would mean significant spending cuts across the board. The Republican-controlled House will have to negotiate final spending levels with the Democratically-controlled Senate and White House, both of which have voiced their opposition to significant cuts.  

OFN will continue to work with our partners to ensure the maximum level of grant funding possible for CDFIs across the federal government and particularly at the CDFI Fund.  

Join OFN’s public policy team for a webinar on March 28 for a policy update and to learn more about appropriations advocacy, and how you can get involved! Register here.  

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