Senate Appropriations Committee Recommends Increased Budget for CDFI Fund
Members of the Senate continue to advocate for the CDFI Fund, passing a fiscal year 2025 spending bill that allocates the Fund $354 million.
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On August 1, the Senate Appropriations Committee voted unanimously to approve its proposed fiscal year (FY) 2025 Financial Services and General Government spending bill. The bill provides $354 million for the CDFI Fund, a $30 million or 9.3% increase from FY24. It includes a $10 million subsidy for the Bond Guarantee Program (BGP) and a $7 million increase for the Native CDFI Assistance Program (NACA).
This number is nearly $80 million more than the House appropriation of $276.6 million proposed in June and President Biden’s FY25 budget request of $325 million. It also exceeds the $350 million allocation OFN has advocated for throughout the FY25 appropriations cycle — a testament to the strong bipartisan support the CDFI industry has garnered in the Senate.
Source: CDFI Coalition
“OFN commends the Senate’s funding proposal,” said Dafina Williams, OFN’s Executive Vice President, Chief Public Policy Officer and Head of Government Affairs. “CDFIs enable hard-working Americans to kickstart and grow their small businesses, finance safe and affordable housing, and invest in local communities, which are essential for a thriving economy. We are pleased to see bipartisan recognition of the critical role CDFIs play in investing in underserved communities, ensuring economic growth and opportunities for all.”
During the full committee hearing, both Senate Appropriations Financial Services and General Government Subcommittee Chair Chris Van Hollen (D-MD) and Ranking Member Bill Hagerty (R-TN) highlighted the importance of the CDFI Fund.
“Creating an economy that works for all Americans should be at the heart of everything we do. That’s why, within this bipartisan legislation, we secured funding to support our small businesses and community-based lenders, protect consumers, build out our broadband infrastructure, and ensure the security of our financial system,” said Senator Van Hollen.
Senator Hagerty called the bill a “constructive step towards successfully negotiating a final bill with the House” and noted that it “includes critical investments at the Department of Treasury.”
With lawmakers in August recess and current federal financing expiring at the end of September, Congress will most likely need to pass a continuing resolution to avoid a government shutdown. Negotiations to pass a final spending package may also stall until November due to election campaigning. OFN supports Congress adopting the Senate’s proposed funding level in final negotiations, and we need your support.
Use OFN’s Policy Action Center to tell your Members of Congress to back this critical funding for the CDFI Fund!
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