2020 budget planning.
Just weeks after Congress rebuffed President Trump's plan to eliminate the Community Development Financial Institutions program, the president on Monday presented a budget plan that once again proposes to kill the program.
"More than two decades ago, the CDFI Fund was created to jump start an industry at a time when CDFIs had limited access to private capital," the Trump Administration said in its FY20 budget blueprint. "The industry has now matured and has ready access to the capital needed to extend credit and provide financial services to underserved communities."
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The Trump FY20 budget outlines the administration's priorities for the next fiscal year and as is the case with the CDFI program, it includes proposals that have little or no chance of being enacted.
"With such misguided priorities, the Trump budget has no chance of garnering the necessary bipartisan support to become law," House Appropriations Committee Chairwoman Nita Lowey (D-N.Y.) said following the budget release.
The $4.75 trillion budget calls for an additional $8.6 billion for a wall to be constructed along the U.S. southern border. At the same time, it calls for a 5% reduction in nondefense discretionary programs.
Trump has repeatedly proposed eliminating the CDFI program. However, in the huge omnibus spending deal that the president and the Congress agreed on last month, the program received $250 million, the same amount it had received in FY2018.
During a recent hearing on the CDFI program, Rep. Mike Quigley (D-Ill.), chairman of the House Financial Services Appropriations Subcommittee, said Congress and the administration should stop fighting over the program.
"Let's stop this game," he said. "My colleagues on the other side of the dais know the importance and value of the CDFI Fund."
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