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FINALLY A FY2011 Budget

Congress voted to pass a FY2011 budget that includes $38 billion in cuts today and President Obama is expected to sign it.

Here’s the nitty gritty courtesy of our friends at CFED – the bolded items will affect CAMEO members.

Department of the Treasury

The Community Development Financial Institutions Fund (CDFI Fund) will receive $227 million, down $20 million from FY10. CDFI Fund must spend $22 million on the Bank Enterprise Award and may not award any money to the Capital Magnet Fund.

Small Business Administration

SBA will continue to be funded at FY10 levels, with the exception of the Disaster Loan Program, whose carryover balances allow it to operate at FY10 levels with reduced budget authority.

As of the time of publication, details on funding for specific programs are not yet available. Based on the legislation, we expect that the Microloan program will have $25 million for loans and $22 million for technical assistance and PRIME will have $8 million. We will share additional information as it becomes available. Please check back with us at for the latest information.

Department of Agriculture

* Women, Infants and Children (WIC) nutrition program is funded at $6.748 billion, a reduction of 7% below FY10
* Rural Development Housing Service Section 502 Direct Loans and 502 Loan Guarantees will have budgetary authority of $70.2 million, a 14% reduction, though recent changes in program administration policies will allow for nearly the same level of total direct loan activity — about $1.1 billion — as in FY2010. However, as CFED has noted, the President’s budget proposal for FY2012 proposes an 80% reduction in RD 502 Direct budget authority, which would be disasterous for rural affordable housing
* Rural Development Intermediary Relending Program will be have $30 million in budgetary authority, down from $38.5 million in 2010
* Rural Business Enterprise Grants will have $30 million in budgetary authority, down from $38.7 million in 2010
* All funding ($45 million) for the Rural Microenterprise Assistance Program is eliminated, including mandatory funding

Department of Housing and Urban Development
The agency’s budget has been cut 6% from FY2010.

* All funding ($88 million) for housing counseling has been eliminated
* All funding ($50 million) for the Energy Innovation Fund has been eliminated
* HOME Investment Partnerships will be funded at $1.6 billion, reduced by $215 million from FY2010
* HOPE VI will be funded at $100 million, reduced by $100 million from FY2010
* Family Self Sufficiency program (FSS) will be funded at roughly the same level to FY10, $60 million
* Community Development Block Grants (CDBG) will be funded at $3.3 billion, down $643 million from FY10
* The bill prohibits CDBG funds from supporting the Economic Development Initiative, the Neighborhood Initiative, and the Rural Innovation Fund, and caps CDBG spending on Sustainable Communities at $100 million

* Native American Housing Block grants are funded at $650 million, down from $700 million

Department of Health and Human Services
The agency’s budget has been cut 5% from FY2010, to $70.6 billion.

* Low Income Housing Energy Assistance Program (LIHEAP), will be funded at $4.71 billion, a reduction of $390 million below the FY10 level. However, the base formula grant funding will remain unchanged, allowing states to continue to serve current participants
* Community Services Block Grants (CSBG) will be funded at $703 billion, roughly equal to the FY10 level
* As of this writing, the Assets for Independence program is funded at about $24 million, equal to previous years

Department of Education

The maxiumum Pell Grant award will be maintained at $5,500 but students will no longer be eligible to receive a second Pell award in one year to cover summer semester tuition costs. This will save $35 billion over 10 years.

Your members of Congress will be at home in your communities for a district work period from April 18-29. Attend their town hall meetings to recommend a more balanced approach of tax increases and spending cuts. Tell them how these budget cuts will impact your community. Please let us know the outcomes of your discussions.