The House Financial Services Appropriations Subcommittee on Wednesday will consider FY21 spending legislation that would provide $273.5 million for the Community Development Financial Institution program.
That would represent an $11.5 million increase from this year’s total, but much less than program advocates wanted. Wednesday’s markup of the financial services funding bill is the first step in the FY21 CDFI appropriations process.
The CDFI program funds provide support for community development financial institutions, including more than 290 credit unions, and is separate from money the program received to lend to companies as part of the Paycheck Protection Program.
In May, more than 500 lenders, including credit unions and trade groups, sent congressional leaders a letter requesting $1 billion for the program.
In each of its budgets, the Trump Administration called for elimination of the CDFI program. However, the program is popular on Capitol Hill so that request has been ignored.
In the same bill, the House subcommittee proposes providing the National Credit Union Administration’s Community Development Revolving Loan Fund with $2 million in FY21. The program received $950,000 this year.