Updated July 8, 2021
On June 24, the House Financial Services and General Government (FSGG) Subcommittee held a markup and approved their Fiscal Year (FY) 2022 appropriations bill. On June 29, the bill was approved by the full House Appropriations Committee. The bill included $330 million for the CDFI Fund, a $60 million increase from FY 2021 but still far below the funding level of at least $1 billion that the CDFI industry recommended.
At the subcommittee markup, FSGG Subcommittee Chairman Mike Quigley (D-IL) highlighted the increase in funding and reiterated his longstanding support for CDFIs during his opening statement. Appropriations Committee Chairwoman Rosa DeLauro (D-CT) said the investment into the CDFI Fund would “foster and support small businesses across American communities.” The chart below compares funding levels in the House bill for the various CDFI Fund programs with the current fiscal year and President Biden’s budget request.
The next step in the appropriations process on the House side is for the bill to proceed to the House floor. The Senate has yet to release any of their spending bills for FY 2022, but we expect they will begin the process next month. The House and Senate have not yet agreed on their topline spending numbers for the year and Congress is facing an increasingly short timeline to finish their appropriations work before the new fiscal year begins on October 1. It is likely there will be at least one short-term continuing resolution to fund the federal government while Congress completes its work to reach an agreement on FY 2022 spending.
To move the needle on addressing economic challenges facing underserved communities, CDFIs need at least $1 billion in annual funding from the CDFI Fund. Take action today by contacting your Members of Congress to express your support!