A $15 billion spending-cuts bill that takes funds from two Treasury Community Development Financial Institution (CDFI) Fund programs was approved by the House late Thursday on a close vote of 210-206, with 19 Republicans among those voting against.
H.R. 3, the Spending Cuts to Expired and Unnecessary Programs Act, implements funding rescissions sought by the Trump administration. Senate Majority Leader Mitch McConnell (R-Ky.) said in May that the Senate would be willing to look at such a measure if it cleared the House. H.R. 3 requires Senate passage before it can be enacted.
The CDFI Fund programs affected by the package are the Bank Enterprise Award (BEA) Program and the Capital Magnet Fund. The package:
- Rescinds $22.8 million in Bank Enterprise Award funds that were appropriated last fiscal year and available as of Oct. 1, 2017. The BEA Program provides awards to Federal Deposit Insurance Corp.-insured depository institutions that support CDFIs.
- Rescinds $141.7 million from the Capital Magnet Fund for fiscal 2018. 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. Fund balances come from assessments on Fannie Mae and Freddie Mac under the Housing and Economic Recovery Act of 2008.