|On June 24, the House Appropriations Committee approved its FY23 Financial Services General Government (FSGG) bill, which includes funding for the Treasury, Executive Office, judiciary, D.C., and over two dozen additional independent agencies. The bill provides $29.8 billion in funding overall, an increase of $4.3 billion (17 percent) over FY22. Notably, the bill includes $336.4 million for the Treasury’s Community Development Financial Institutions Fund (CDFI Fund), which is $41 million higher than FY22 and approximately $5 million above the President’s budget request.
The bill specifically directs the CDFI Fund to provide financial assistance awards to organizations lending and investing in persistent poverty areas (defined as census tracts with poverty rates of at least 20 percent over the period of 2016 to 2020). In addition, it waives the matching funds requirement for the Native American CDFI Assistance Program, as well as Small and/or Emerging CDFIs participating in the CDFI Fund Programs. Under statute, CDFI Programs financial assistance awards must be matched with non-federal funds on a dollar-for-dollar basis. In addition, the committee encourages the creation of an Office of Minority Lending Institutions led by a Deputy Director for Minority Lending Institutions in the accompanying report released after markup. The purpose is to make sure that at least 40 percent of CDFI Programs awards are distributed directly to CDFIs that are minority lending institutions.
The Senate Appropriations Committee has yet to schedule mark-ups for its related bills. Read more details on the FY23 FSGG Appropriations bill in the committee’s report.