Today, the White House released its FY24 Budget proposal. Today’s release includes a budget narrative along with several fact sheets highlighting areas of the budget. We expect more detail next week.
The budget proposal includes provisions to make the NMTC permanent and also to expand funding for the CDFI Fund. Notably, the proposal would add a $10 million subsidy to improve the CDFI Fund’s Bond Guarantee Program, which currently operates as a zero-subsidy program. From the Equity Fact Sheet:
“Expands Access to Credit. The Budget provides $341 million for the Community Development Financial Institutions (CDFI) Fund, an increase of $17 million, or 5 percent, above the 2023 enacted level, which provides historically underserved and often low-income communities access to credit, capital, and financial support to grow businesses, increase affordable housing, and reinforce healthy neighborhood development. To better address the shortage of long-term affordable credit for development projects in disadvantaged communities and unlock up to $500 million in financing support, the Budget also includes a $10 million subsidy for the CDFI Fund’s Bond Guarantee Program.”