Feb. 3, 2015 – The FY2016 budget proposal released by President Barack Obama continued to demonstrate strong support of CDFIs, according to Mark Pinsky, president and CEO of the Opportunity Finance Network.
The proposal includes $233.5 million for the CDFI Fund, an increase over the Administration’s $226 million proposal last year and the $230.5 million approved for FY 2015, Pinsky reported Feb. 3 in an update to network members.
The CDFI Fund promotes economic revitalization and community development through investment in and assistance to community development financial institutions, such as Initiative Capital, the N.C. Community Development Initiative’s CDFI subsidiary.
The President’s budget includes $16 million for the CDFI Fund’s Native American programs and $35 million for the Healthy Foods Financing Initiative, and waives the match requirements in the Native and Small and Emerging CDFI Assistance Programs. It also authorizes the Fund to issue $1 billion in guarantees through the CDFI Bond Guarantee program.
The budget also includes proposals for other items on the CDFI Opportunity Agenda, including funds to administer the Capital Magnet Fund; permanent extension of the New Markets Tax Credit; and reforms to the Bond Guarantee program.
“The release of the President’s budget begins the appropriations cycle for the year. In the coming months, Congress will hold hearings and discussions to develop their own versions of spending proposals for FY 2016. Recent history and current relations between the President and Congress suggest that this budget year will be more challenging than ever, and that we might not see final appropriations legislation until late 2015,” Pinskey said.
OFN’s Public Policy team will provide regular updates to its network on the Congressional appropriations process and what this means to the industry.
Read OFN’s Opportunity Agenda for more information.