WASHINGTON—President Biden hasreleased his fiscal year 2023 budget proposal, and of particular interest to credit unions it includes more than $330 million for $330 million for the community development financial institutions fund.
In all, the budget totals more than $5.7 trillion.
In its official statement, the administration said the budget request to Congress "sends a clear message that we value fiscal responsibility, safety and security at home and around the world, and the investments needed to continue our equitable growth and build a better America.”
In addition to the CDFI funding, also of interest to credit unions in the budget is a boost in funding for the Small Business Administration (SBA) and the Department of Housing and Urban Development (HUD) compared to 2022 enacted levels, NAFCU noted.
Here are some of the specific allocations in the proposed budget:
CDFI Fund
The proposal provides $331 million to the Treasury's CDFI Fund – a 23% increase from fiscal year 2022. The CDFI funding is cited as supporting opportunities for minority-owned businesses, affordable housing development, and community revitalization projects.
SBA
The president’s budget proposal increases the authorized lending levels in SBA’s flagship 7(a) loan guarantee program, the 504 loan program for fixed assets, Small Business Investment Companies, and the Secondary Market Guarantee program by a total of $9.5 billion.
FinCEN
Citing global conflict, specifically the war between Russia and Ukraine, Biden's proposed budget includes $210 million for the Financial Crimes Enforcement Network (FinCEN) as the U.S. continues to expand it sanctions against Russia and works to tighten cybersecurity.
Housing
The budget includes funding to support access to homeownership for underserved borrowers, including many first-time and minority homebuyers, through Federal Housing Administration (FHA) and Ginnie Mae credit guarantees. Via FHA and HOME. The budget also provides $115 million for complementary loan and down payment assistance pilot proposals to expand homeownership opportunities for first-generation and/or low-wealth first-time homebuyers.
In addition, the proposal requests $50 billion to boost the supply of housing, including $35 billion in funding for state and local housing finance agencies to provide grants and revolving loans to “reduce transactional costs and increase housing.” Those funds are part of a request to boost HUD’s overall budget by 34%, for a total of $71.9 billion in funding, NAFCU noted.
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