Bush Is Calling For Huge Cut To CDFI Funding

WASHINGTON - The president is asking for a $28.6 million appropriation for the Community Development Financial Institutions (CDFI) Fund, a 69.6% slashing of the fund from last year’s appropriation of $94 million.

The CDFI Fund is aimed at expanding the availability of credit, investment capital and financial services in distressed urban and rural communities. The White House has sought to cut back on funding for the program numerous times, with Congress balking at the cuts each time.

The CDFI Fund is part of a package that also includes the New Markets Tax Credit (NMTC) Program, which the White House is seeking to extend beyond its planned sunset at the end of this year, the Bank Enterprise Award, and the Native Initiatives program. The administration is seeking cuts to the entire package of programs of just under 70%.

The administration said it is seeking to extend the NMTC through 2009, saying it would encourage private capital to be invested in low-income communities and help stimulate economic and community development and job creation in these communities.

Other portions of the package include the Bank Enterprise Award and the Native Initiatives program, both of which the administration is suggesting be cut entirely. The White House is calling for $24.4 million in funding for the portion that includes grants for low-income CUs, reduction of 58.2%. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com