Mary Scott Balys
On May 27, President Biden released his long anticipated full Fiscal Year 2022 (FY 2022) budget request. Although the top line request for the CDFI Fund of $330 million was included in previously-released budget documents, the full budget provides significantly more detail about both the budget for FY 2022 and the budget-related components of the Biden-Harris Administration’s infrastructure proposal, the American Jobs Plan (AJP).
Action is already underway in Congress, which will ultimately decide on final funding levels. The House and Senate have already begun the appropriations process and need to hear from you in support of $1 billion for the CDFI Fund and about the importance of CDFI Fund grants. Visit OFN’s Policy Action Center to reach out to your Members of Congress today!
The budget request details the programmatic breakdown of the request for the CDFI Fund, shown in the chart below with previous year numbers for comparison:
Beyond the CDFI Fund, the budget increases funding for other areas including increasing funding for the Small Business Administration (SBA) by 9 percent to $852 million. The budget proposal also outlines key components of the American Jobs Plan, including a one-time investment of $12 billion for the Capital Magnet Fund, $10 billion to create a new Community Revitalization Fund, and provides one-time funding for schools, childcare facilities, affordable housing, small businesses, and green energy investments.
The AJP also includes tax provisions of interest to CDFIs, such as making the New Markets Tax Credit Permanent, adding $55 billion in Low Income Housing Tax Credit Authority, and creating the Neighborhood Homes Investment Act credit for construction and rehabilitation of affordable homes.