On July 13, the House Appropriations Committee approved the Financial Services and General Government (FSGG) fiscal year (FY) 2018 Appropriations bill. The bill reduces the CDFI Fund’s budget from FY17 funding level of $248 million to $190 million, a decrease of 23 percent. The bill continues the CDFI Bond Guarantee Program (BGP) with $500 million in guarantee authority.

During the markup (view starting at 9:39), House Appropriations Ranking Member Nita Lowey (D-NY-17) spoke out against the cuts to the CDFI Fund’s budget. Rep. Jose Serrano (D-NY-15) offered an amendment to restore funding to the FY17 CDFI Fund level of $248 million, with Rep. Mike Quigley (D-IL-5) and Rep. Chellie Pingree (D-ME-1) weighing in with strong support of the amendment.

Although House FSGG Chairman Tom Graves (R-GA-14) opposed the amendment, he stated it was more of a budget issue and the lack of a spending offset than opposition to the CDFI Fund’s programs or the work done by CDFIs. He mentioned he had met with CDFIs both from his district and the districts of other committee members, as well as visited projects on site visits in the D.C. area. This highlights the importance of Congressional site visits to build the support of lawmakers and enabling them to see how CDFI Fund awards create tangible benefits in under-resourced communities. As we approach the next in-district work period, OFN has prepared tips on how your CDFI can host a successful site visit during the month of August.

Ultimately, the full Appropriations approved the bill with the CDFI Fund’s budget as follows:

CDFI Fund Programs

Current Allocations (FY17)

President Trump’s FY18 budget proposal

House FY18 budget proposal

Percentage Change from FY17

FA/TA

$161.5 MM

$3 MM*

$137 MM

-15%

NACA Initiatives

$15.5 MM

$0 MM

$15 MM

-3%

BEA

$23 MM

$19 MM*

$15 MM

-35%

HFFI

$22 MM

$0 MM

$0 MM

-100%

Administrative Expenses

$26 MM

$14 MM

$23 MM

-11%

Disabilities Fund

$3 MM**

$0 MM

$3 MM**

unchanged

Total:

$248 MM

$14 MM

$190 MM

-23%

Other: CDFI BGP

$500 MM

$500 MM

$500 MM

unchanged

*The Administration’s budget chart includes amounts for these programs, but indicates in the text that there is no new funding provided.

**Disabilities Fund will receive allocation through the FA/TA program. 

What’s Next

Congress will adjourn for recess in the next few weeks. The House will be in recess from July 21 to September 4. The Senate will be in recess from August 11 to September 4. Once they return from August recess, there will be just a few weeks to finalize spending bills in both the House and Senate before the FY18 begins on October 1. The Senate FSGG Subcommittee has yet to mark up their FY18 Appropriations bill, although we expect that to happen when they return from recess in September.

OFN remains committed to advocating for $250 million in funding for the CDFI Fund in FY18. We will continue to engage our network in advocacy efforts to tell Congress why funding for the CDFI Fund must be preserved.

For the latest policy updates, keep reading our blog and follow us on Twitter.

 

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