CDFI Fund Receives $55 Million from House Appropriations Subcommittee

WASHINGTON – The Bush Administration's plan to eliminate the Community Development Financial Institutions Fund in favor of a block grant program administered by the Commerce Department has hit another snag. The Transportation, Treasury, Housing and Urban Development, the Judiciary, and the District of Columbia House Appropriations Subcommittee have declined to go along with the plan and instead have appropriated $55 million for the fund, the same level of funding as last year and $47 million more than the Administration sought. While the CDFI Coalition, an organization of CDFIs that supports the Fund, has been advocating for at least an $80 million appropriation, the Coalition believes that this rejection of the Bush Administration proposal to eliminate the CDFI Fund grant programs is very significant. The organization thanked Chairman Joseph Knollenberg (R-Mich.) and Ranking Member John Olver's (D-Mass.) recognition of the important role the CDFI Fund grant programs have played in fostering a nationwide network of CDFIs. The Appropriations Subcommittee Bill next moves to the House Appropriations Committee for final approval before being considered by the entire House of Representatives.