Proposed FY 2025 Appropriations are Disappointing for the CDFI Fund
OFN’s Public Policy team shares their perspective on the House’s proposed fiscal year 2025 budget, which significantly rolls back funding for the CDFI Fund.
Read time: 2 minutes
On June 4, the House Financial Services and General Government Subcommittee released their spending bill proposing their fiscal year (FY) 2025 budget at a 10% cut from the spending level for the current fiscal year. In it, they allocated $276.6 million for the CDFI Fund, a disappointing $47.4 million below FY 2024 spending levels. While this does not come as a surprise and is a similar funding level to what the House proposed last year, it is still a concern.
“OFN is disappointed with the House funding proposal,” said Dafina Williams, OFN’s Executive Vice President, Chief Public Policy Officer and Head of Government Affairs. “One reason CDFIs enjoy bipartisan support is our track record of delivering opportunity, an essential part of the American dream, especially in underserved communities. The federal government is an indispensable partner – we must meet this moment together by investing in opportunity.”
During the full House Appropriations Committee meeting on June 13, multiple members of the committee expressed disappointment with the funding level for the CDFI Fund, citing concerns that the budget cuts would harm hardworking, middle-class families, Native communities, and main street small businesses that were supported by CDFIs during the pandemic.
In the coming weeks, the Senate will put together their proposed spending bills and negotiations will begin. Last year, Congress’s negotiated suspension of the debt ceiling allowed for a 1% increase in non-defense spending for FY2025; however, the House has not abided by last year’s agreement for FY 2024 or in their FY 2025 proposals. The Senate is likely to mark their bills up to the agreed-upon increase, leaving the two chambers far apart as they begin final negotiations.
OFN is advocating for $350 million for the CDFI Fund to keep pace with the needs of the communities that CDFIs serve, and we need your help to advocate. Use OFN’s Policy Action Center to tell your Members of Congress the importance of the CDFI Fund!
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