House Financial Services and General Government Subcommittee Proposes $336.42 Million for the CDFI Fund
Mary Scott Balys
On June 16, the House Financial Service and General Government (FSGG) Appropriations Subcommittee marked up and approved its FY 2023 appropriations spending bill, which includes the proposed funding level for the CDFI Fund. The bill includes $336.42 million for the CDFI Fund, slightly higher than President Biden’s budget request of $331 million.
This funding level would be a more than $41 million increase from the current fiscal year. However, it is still far short of the $1 billion needed annually to meet current CDFI demand and allow the industry to scale to meet the needs of communities it serves.
At the hearing, FSGG Subcommittee Chairman Mike Quigley (D-IL) highlighted the CDFI Fund increase, his long-time support for CDFIs, and how it would provide critical resources to underserved communities. Appropriations Committee Chair Rosa DeLauro (D-CT) also spoke about her support for CDFIs and stated that the increase would promote economic growth in distressed communities.
The Republican ranking members of both the subcommittee and full committee expressed that, although they did support some portions of the bill, they felt the overall spending level was too high and had objections to some policy provisions in the bill. The subcommittee approved the bill on a voice vote.
The full House Appropriations Committee will now mark up the bill on June 24 with the goal to bring all 12 appropriations bills to the floor later this summer. The Senate has not begun releasing its spending bills and there is not yet agreement on FY 2023 topline spending numbers between the House and Senate.
With the summer Congressional recess rapidly approaching, the looming midterm elections, and the lack of agreement on final spending caps, it is unlikely that Congress will agree on a full spending plan prior to the start of the fiscal year on October 1. At least one short-term continuing resolution may be needed to keep the federal government funded.
There is still time to weigh in on the appropriations process. Take action today by contacting your Members of Congress in support of $1 billion for the CDFI Fund!