CUNA wrote House leadership in opposition to a bill that would make rescissions from a part of the Treasury’s Community Development Financial Institutions (CDFI) Fund. The bill, which passed the House Thursday night by a 210-206 vote, would rescind $141 million from the CDFI Fund’s Capital Magnet Fund, which awards grants available to CDFIs.
“CDFI credit unions apply for and use awarded grants from the Capital Magnet Fund to finance affordable housing solutions and community revitalization efforts that benefit low-income individuals and communities nationwide,” wrote CUNA President/CEO Jim Nussle. “CUNA opposes this 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.”
Nussle also noted that Congress has repeatedly protected the CDFI Fund from cuts and elimination. CUNA successfully fought for $250 million CDFI funding ($2 million higher than the previous year) in the fiscal year 2018 omnibus appropriations bill after early versions zeroed out the fund.
As of April 30, credit unions make up 283 of the 1,079 certified CDFIs around the country.