The Obama administration's proposed 2012 budget would cutthe Treasury Department's CDFI Fund by just over 9%, according to data supplied by the CDFI Coalition.
The organization of financial institution stakeholders in the fund reported the administration has proposed just over $227 million for the program 2012, about $23 million less than the amount proposed for 2011 and about $20 million less than the level included in the administration's continuing resolution for 2011. The CDFI Fund has yet to comment on the budget allocation.
Because the appropriations process has not yet been completed, federal operations so far this year have been funded by a series of continuing resolutions. The administration's latest proposed continuing resolution for 2011 would leave the fund with $247 million. The House Appropriations Committee has proposed a continuing resolution that is far lower, leaving the fund with $50 million.
A record number of community development credit unions this year have been recognized as community development financial institutions and would thus be eligible for grants from the CDFI Fund.