The Trump administration sent a multibillion-dollar package of proposed spending cuts to Congress Tuesday that includes a $151 million to the Capital Magnet Fund, part of the Treasury’s Community Development Institutions (CDFI) Fund. CDFI credit unions use grants from the Capital Magnet Fund to finance affordable housing solutions and community revitalization efforts that benefit low-income people and communities nationwide.
“CUNA strongly opposes rescission from funds that have already been authorized, particularly funds that credit unions are able to leverage for much-needed affordable housing solutions in the communities they serve,” said CUNA President/CEO Jim Nussle. “CUNA will continue our engagement with appropriators and other officials to ensure these important funds remain available for credit unions and other CDFIs that support community revitalization.”
CUNA successfully advocated for the CDFI Fund earlier this year when the administration’s fiscal year 2018 budget zeroed out the fund. Congress passed a fiscal year 2018 omnibus bill in March that funded the CDFI Fund at $250 million, a $2 million raise from the previous year.