President Donald Trump released his budget submission Monday for fiscal year 2019, and as before, two vital funds for credit unions are zeroed out in the initial version. Both the Treasury’s Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund were zeroed out in Trump’s budget last year, but strong advocacy from CUNA, leagues, credit unions and members got the funding restored.
“CUNA is fully engaged with the budget process, and while its troubling to see nothing allocated to these important funds, we’re confident that as before, credit unions can amply demonstrate the value that these funds bring to their communities,” said CUNA President/CEO Jim Nussle. “We’ll be paying close attention as the process moves forward, and will be in touch with our stakeholders if and when additional action is needed.”
Certified CDFIs are Certified CDFIs can apply for grants and other awards through the Treasury’s CDFI Fund. As of Dec. 31, credit unions make up 305 of 1,110 certified CDFIs.
NCUA’s CDRLF assists credit unions serving low-income communities to provide financial services to their communities by funding a revolving loan and technical assistance program.
Last year, CUNA called for engagement from the entire credit union system after both were zeroed out, and those efforts were successful. CDRLF funding was restored during a House Appropriations Committee and the CDFI Fund was funded fully at $248 million, an increase of $14.5 million over the previous fiscal year.