Budget rescissions would cut award funds for banks helping CDFIs, more

The president sent the proposed rescissions to Congress Tuesday.

The $15.4 billion package of budget rescissions sent to Congress this week would rescind $22.8 million available for awards to banks supporting community development financial institutions (CDFIs) and another $151.3 million for a CDFI program fund supporting affordable housing initiatives.

Both rescissions affect programs administered through the Treasury Department’s CDFI Fund. The $22.8 million represents funds appropriated in FY 2017 and available on Oct. 1, 2017, for the CDFI Fund’s Bank Enterprise Award Program, which provides awards to FDIC-insured depository institutions that support CDFIs. Rescission would reduce budget authority for this program.

The other $151.3 million equals balances in the CDFI Fund’s Capital Magnet Fund (CMF) as of this May 1. The CMF is a competitive grant program that funds housing nonprofits and CDFIs to finance affordable housing activities, as well as related economic activities and community service facilities. Balances for the CMF come from assessments on Fannie Mae and Freddie Mac under the Housing and Economic Recovery Act of 2008. The White House proposes permanent rescission of the $151.3 million available for FY 2018, which would reduce funds available for grants under this program.

The rescissions package, which provides for 38 rescissions in programs across more than a dozen federal departments and agencies, awaits congressional approval.

Proposed rescissions of budget authority