Current Policy and Advocacy
FY24 CDFI Fund Appropriations
FY24 CDFI Fund Appropriations
FY 2024 APPROPRIATIONS
The Community Development Financial Institutions Fund (CDFI Fund), established within the U.S. Department of Treasury in 1994, promotes community and economic development in distressed urban and rural communities by investing in and growing CDFIs across the country. The agency administers a range of innovative and effective programs that enable Community Development Financial Institutions (CDFIs) to address the needs of underserved markets. CDFI Fund grant programs include: Financial Assistance and Technical Assistance awards to small and emerging CDFIs as well as established CDFIs; the Native American CDFI Assistance Program aimed at increasing the number and capacity of CDFIs serving Native communities; the Economic Mobility Corps Awards to build CDFI capacity in partnership with AmeriCorps; the Small Dollar Loan program supporting lower-cost consumer lending; and the Bank Enterprise Awards program providing monetary awards to FDIC-insured banks that invest in low-income
communities and CDFIs.
CDFIs significantly leverage CDFI Fund resources in communities and with people left out of the economic mainstream, generating $12 in private capital for every dollar in CDFI grants.
For FY 2024, the CDFI Coalition urges Congress to continue its bipartisan support for CDFIs by providing $341 million in appropriations for the CDFI Fund. CDFIs will put these resources to work by providing financial services to underserved markets that have borne the brunt of pandemic. High rates of unemployment and small business failures are largely concentrated in the communities CDFIs serve.
RECENT LEGISLATIVE HISTORY & ADVOCACY FOR THE CDFI FUND
On December 19, the House and the Senate Appropriations Committee released the Fiscal Year 2023 (FY 23) Consolidated Appropriations Act. The legislation funds the federal government’s discretionary activities and disaster assistance provisions.
Overall, funding for the CDFI Fund continues upward, although at a slightly lower level than the budget request and the level recommended by the House. The total available for FY 23 is $324, an increase of $29 million above FY 22 and $7 million below the budget request.
FY 2023 APPROPRIATIONS
The Community Development Financial Institutions Fund (CDFI
Fund), established within the U.S. Department of Treasury in 1994, promotes
community and economic development in distressed urban and rural communities by
investing in and growing CDFIs across the country. The agency administers a
range of innovative and effective programs that enable Community Development
Financial Institutions (CDFIs) to address the needs of underserved markets.
CDFI Fund grant programs include: Financial Assistance and Technical Assistance
awards to small and emerging CDFIs as well as established CDFIs; the Native
American CDFI Assistance Program aimed at increasing the number and capacity of
CDFIs serving Native communities; the Economic Mobility Corps Awards to build
CDFI capacity in partnership with AmeriCorps; the Small Dollar Loan program
supporting lower-cost consumer lending; and the Bank Enterprise Awards program
providing monetary awards to FDIC-insured banks that invest in low-income
communities and CDFIs.
CDFIs significantly leverage CDFI Fund resources in
communities and with people left out of the economic mainstream, generating $12
in private capital for every dollar in CDFI grants.
For FY 2023, the CDFI Coalition urges Congress to continue
its bipartisan support for CDFIs by providing $1 billion in appropriations for
the CDFI Fund. CDFIs will put these resources to work by providing financial
services to underserved markets that have borne the brunt of pandemic. High
rates of unemployment and small business failures are largely concentrated in
the communities CDFIs serve.
TAKE ACTION: In-District Advocacy
A picture is worth a thousand words, as the saying goes, but we know that seeing your work firsthand is invaluable when it comes to getting Members of Congress’ support for CDFI Fund Programs. There is no substitute for a tour of an CDFI-financed business, visiting a project under development, or taking part in a ribbon-cutting—events where legislators can meet and hear about the important role CDFIs play in the community directly from constituents and local officials. This kind of interaction leaves a large and lasting impression of the effectiveness of the CDFI community.
We encourage CDFIs to engage with their Members of Congress while they are in the state or district and have created a toolkit of information to help you in your efforts--no matter the amount of time you have to dedicate. It contains tips for powerful actions to cultivate a new relationship or nurture an existing relationship with your Senators and Representatives at home and—most importantly—demonstrate the importance of the CDFI Fund appropriations in the face of persistent and stubborn credit gaps that are so pervasive in low-income urban and rural communities.