The Biden administration is requesting $325 million for the Community Development Financial Institutions Fund in its proposed budget for fiscal year 2025, according to a summary of the request released by the Office of Management and Budget. If approved by Congress, the proposal would represent an increase of $1 million above the 2023 level, and a $55 million, or 20%, increase above the 2021 level.
The proposed budget also includes a $10 million subsidy for the CDFI Fund’s Bond Guarantee Program to address the shortage of long-term affordable credit for development projects in disadvantaged communities. It also would broaden access to the Small Dollar Loan Program to allow more organizations to participate. The program supports individuals seeking affordable credit-building loans and alternatives to costly payday loans.
In addition, the proposed budget would make permanent the new markets tax credit, which is currently set to expire in 2025. The American Bankers Association last year joined more than 700 organizations in urging the White House and Congress to make the tax credit permanent, calling it an important source of funding for business and community development projects.
