Proposed federal budget for fiscal year 2025 while FY 2024 budget is not finalized yet . Picture here is the US capitol building on a sunny day

President’s Budget Rolls Back Spending to Near FY 2023 Levels 

Proposed federal budget recommends $325 million for the CDFI Fund for fiscal year 2025, while the final FY 2024 bill provides level funding. 

Read time: 2 minutes

On March 11, President Biden released his budget proposal for fiscal year 2025. The requested budget recommends $325 million for the CDFI Fund – $16 million less than the President proposed in FY 2024. This would roll back funding to just $1 million over FY 2023 levels. The CDFI Fund request includes a $10 million appropriation for a credit subsidy for the Bond Guarantee Program for the second year in a row, a long-time priority for OFN.  

In addition to the proposed CDFI Fund budget, the proposal also touches other CDFI priorities. The President’s budget supports the following: 

  • Making the New Markets Tax Credit permanent and formalizing allocation incentives
  • Creating a new $270 million Neighborhood Homes Tax Credit
  • Expanding and enhancing the Low-Income Housing Credit
  • Improving and reauthorizing the Bond Guarantee Program, consistent with bipartisan legislation (S. 869)
  • Providing over $58 billion in lending through the Small Business Administration, including in 7(a) and 504 loan guarantee programs and creating a new lending program to address gaps in small dollar lending
  • Providing $323.6 million for the Environmental Justice Program at the Environmental Protection Agency
  • Requesting $1 billion for loan guarantees for renewable energy systems, energy efficiency improvements for rural small businesses and farmers, as well as $6.5 billion for rural electric loans to support additional clean energy, storage, and transmission through USDA  

Nearly six months after the start of the fiscal year, the final FY 2024 bill was signed into law on March 23. The bill provides level funding for the CDFI Fund of $324 million.

OFN will continue to collaborate with our partners to advocate for the highest possible level of grant funding for CDFIs across various federal agencies, with a focus on the CDFI Fund.  

On April 17, OFN will hold a webinar to provide a policy update and discuss how to get involved in advocacy. Stay tuned for registration details!


Visit our policy action center for information, tools, and other resources to help you advocate on behalf of CDFIs and the communities they serve. 

Connect With OFN

Subscribe to receive regular updates straight to your inbox and check out our blog for the latest coverage from OFN and the CDFI industry. 
Follow us on social media.

More From OFN

  • OFN’s Statement on the Troubling Trends in the Legal Environment

    We are dismayed by the recent ruling in Texas finding that the Minority Business Development Agency’s (MBDA) presumption that businesses… Read More

  • OFN Opposes Lawsuit Against Community Reinvestment Act Reforms 

    OFN has issued a statement opposing the lawsuit against the new Community Reinvestment Act rules. On February 5, 2024, several… Read More

  • 2023 Policy Round-Up: Four Key Issues to Know

    From long-awaited CDFI certification updates to the uncertainty of federal budget appropriations, OFN is sharing a year-end update on the… Read More

Tags: , ,