Spending Deal Includes $12 Million Boost for CDFI Program
The package, set to be considered by Congress this week, includes an extension of NFIP program authorization until the end of FY20.
The Community Development Financial Institutions program would receive a $12 million increase – to $262 million – in FY20 under the end-of-year spending deal Congress is set to consider this week.
The funding is part of a two-bill package – totaling some $1.37 trillion – that includes the 12 annual appropriations measures that Congress tries to enact each year.
The package also includes provisions to extend the National Flood Insurance Program to Sept. 30, 2020 – the end of FY20.
The Trump Administration’s FY20 budget requested that funding for the CDFI program be slashed to $14 million. The House version of the funding bill called for about $300 million for the CDFI program, while the Senate included about $250 million in its bill.
Congressional appropriators said the $262 million in CDFI funding includes $5 million for a small-dollar loan program originally proposed by House Consumer Protection and Financial Institutions Subcommittee Chairman Gregory Meeks (D-N.Y.).
The program would help community development financial institutions provide small-dollar loans as an alternative to payday loans.
The bill also includes $2 million for an Economic Mobility Corps, originally proposed by Sens. Christopher Coons (D-Del.) and Bill Cassidy (R-La.).
That program would set aside funds to assist the Corporation for National and Community Service, which operates the AmeriCorps program, in placing national service members at nonprofit CDFIs.
The appropriations package also includes language to extend the NFIP program authorization until the end of FY20. Congress has been unable to update the NFIP program for the past several years. The flood insurance provision would mark the 14th short-term extension of the program.