Credit Union Industry Groups Pushing for Increase in CDFI Funding

The House Financial Services Appropriations Subcommittee Wednesday approved an FY21 spending measure that calls for $273.5 million for the Community Development Financial Institutions program—less than what many credit unions wanted.

Without much debate, the subcommittee approved its FY21 measure, which now goes to the full appropriations panel. It includes an $11.5 million increase for the CDFI program, as well as $2 million for the National Credit Union Administration’s Community Development Revolving Loan Fund program—up from $950,000 this year.

In a letter to the subcommittee, CUNA President/CEO Jim Nussle asked appropriators to provide $300 million for the CDFI program next year. He also said he was pleased that the House version of the next economic stimulus legislation includes an emergency appropriation of $1 billion for the CDFI fund to help battle the impact of the coronavirus crisis. However, the Senate is not expected to accept much of the House-passed stimulus measure.

“CDFIs such as Community Development Credit Unions (CDCUs) are charged with supplying low-income, distressed communities with traditional banking services such as savings accounts and personal loans, and offering individuals the tools needed to become self-sufficient stakeholders in their own future,” he said in the letter.

Nussle said the NCUA’s Community Development Revolving Loan fund program usually receives requests that far exceed the funding available.

Separately, NAFCU’s Vice President of Legislative Affairs Brad Thaler asked appropriators to provide at least as much money as the CDFI program received this year. He also asked the subcommittee to make it easier for credit unions to apply for CDFI funds.

Thaler also pointed out that NCUA Board member Todd Harper is pushing for an increase of at least $10 million for the NCUA’s revolving loan fund.

“NCUA has seen a strong increase in demand for these grants due to the pandemic and is unlikely to have enough funding to meet demand without additional funding,” he wrote.

Related:

House Bill Includes $273.5 Million for CDFI Program for FY21

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