The White House released its budget document this morning and it explains that it is cutting grant programs at the Fund because the CDFI industry is “now mature”:
Eliminates funding for Community Development Financial Institutions (CDFI) Fund grants, a savings of $210 million from the 2017 annualized CR level. The CDFI Fund was created more than 20 years ago to jump-start a now mature industry where private institutions have ready access to the capital needed to extend credit and provide financial services to underserved communities.
Of course, the Fund cuts are small compared to many others, such as the proposed elimination of the Community Development Block Grant (CDBG) program and others at the Department of Housing and Urban Development.
Congressional leaders have been quick to say that Congress makes the budget and that the President’s budget is just a set of recommendations.
CDFI Fund advocates will have their work cut out, if only because they will be competing with many allies (for example, mayors seeking to restore CDBG) for scarce funding.