CUNA wrote to Senate appropriators Wednesday to support funding levels for 2 credit union-related funds, and to keep language placing the NCUA under appropriations out of any Senate appropriations bill. The House passed its appropriations bill earlier this month, and the Senate appropriations subcommittees are currently constructing their bills.
CUNA President/CEO Nussle asked the Senators to maintain the FY2017 funding level of $248 million for the Treasury’s Community Development Financial Institution (CDFI) Fund for FY2018.
CDFIs finance community development initiatives such as small businesses, community facilities, and low-income housing. 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.
As of July 31, credit unions make up 316 of 1,134 certified CDFIs nationwide. The House passed bill calls for $190 million for the CDFI Fund.
Nussle also called for full $2 million funding for NCUA’s Community Development Revolving Loan Fund (CDRLF), which is used to provide low-interest loans and technical assistance grants to low-income designated credit unions.
The House-passed bill funds the CDRLF at $2 million.
CUNA also noted that it opposes the inclusion of legislative language that would place NCUA under the appropriations process. That language was included in an FSGG bill passed by the House Appropriations Committee, but was successfully removed on the House floor after a strong show of support from credit union stakeholders.
“CUNA strongly opposed this section of the bill because it would have jeopardized the independence of the federal credit union regulator and unnecessarily comingled credit union resources with taxpayer resources, potentially causing credit union resources to be used to pay for other areas of government,” Nussle wrote.