On October 18, the Senate Appropriations Committee released its Financial Services and General Government funding bill for fiscal year (FY) 2022 appropriations. The bill recommends $360 million for the CDFI Fund — $30 million more than President Biden’s budget request and the House-passed funding level of $330 million.
In comparison to the House bill, the Senate version recommends increases in funding for Financial and Technical Assistance (FA/TA) grants, Native American CDFI Assistance (NACA) grants, Bank Enterprise Awards, and administrative costs. The bill proposes small decreases in funding for the Disabilities Fund and Small Dollar Loan program.
The federal government is currently operating under a short-term continuing resolution through December 3. The House and Senate will need to finalize an agreement on FY 22 spending levels before that date to avoid a government shutdown. Negotiations are likely to remain stalled until Congress completes its work on major pending legislation, including the bipartisan infrastructure bill and budget reconciliation packages.
OFN will continue to monitor the status of the appropriations process and advocate for robust funding for the CDFI Fund.