CDFI Fund Appears Spared From Worst Budget Cuts
The U.S. Treasury Department's Community Development Financial Institutions fund is not yet commenting on an announcement from the Senate Appropriations Committee that appears to leave much of its funding for this fiscal year unscathed.
Over the last few years, the fund has provided needed support to community development banks and credit unions, and the initial budget proposals cut the fund sharply.
According to the committee's announcement, the budget compromise deal has $227 million for the fund, an increase of $177 million (or 350%) above the level initially appropriated by the House of Representatives earlier this year.
The number is $19.75 million below the funding level appropriated in 2010, the committee noted, and maintains the Obama Administration's initial funding request.
“The CR level is equal to the FY12 President’s request and will continue critical seed funding that generates private investor confidence to support community development projects in our nation’s communities that are unserved or underserved by traditional financial institutions,” the committee said, “including affordable housing developments, retail developments, community facilities such as day care centers, and small business loans.”