Economic Perspectives with Hopeton Hay on KAZI 88.7 FM in Austin, TX

Obama’s Budget Will Double Funding for Community Development Financial Institututions in FY 2010 If Approved

Posted by Hopeton on May 8, 2009

President Obama’s fiscal year (FY) 2010 budget more than doubles funding for the Community Development Financial Institutions (CDFI) Fund. The President’s budget requests $243.6 million for the CDFI Fund – a 127 percent increase over the $107 million appropriated for FY 2009.

The CDFI Fund expands the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities in the United States.

Donna Gambrell

Donna Gambrell

“The President’s 2010 budget request for the CDFI Fund clearly demonstrates a strong commitment of support to our critical mission of serving distressed communities,” said CDFI Fund Director Donna J. Gambrell. “Beyond the increased funding for our current programs, the inclusion of funding for the Native Initiatives, Capital Magnet Fund, a new research initiative, and proposed legislative enhancements, will all work together to expand the CDFI Fund’s ability to further economic development in communities most in need.”

Highlights of the 2010 budget request for the CDFI Fund include:

  • $243.6 million for the CDFI Fund, which represents a 127 percent increase in total funding;
  • $113.6 million, a 90 percent increase in funding for the CDFI Program to boost investments and other financial services in underserved communities;
  • $80 million for the Capital Magnet Fund, a newly authorized program to increase capital investment for the development, preservation, rehabilitation, or the purchase of affordable housing for low-, very low-, and extremely low-income families;
  • The first Administration budget to specifically include funding ($10 million) for the CDFI Fund’s Native Initiatives, which assist Native Communities (Native American, Alaskan Native and Native Hawaiian communities) to overcome certain barriers to financial services;
  • A new research initiative to conduct strategic research that will analyze the impact and outcomes of the CDFI Fund’s programs, including the effect of changing economic conditions; and
  • Legislative enhancements to the CDFI Fund’s programs to enable greater access to capital for distressed communities

For more information onthe CDFI Fund FY 2010 proposed budget and its justification, click here.

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