The Biden administration released its Fiscal Year 2022 budget proposal Friday with increased funding to several credit union priorities.
The proposal allocates $330 million for the Treasury’s Community Development Financial Institutions (CDFI) Fund, up from $270 million in the previous year.
The CDFI Fund makes capital grants, equity investments and awards for technical assistance to CDFIs for community development initiatives such as small businesses, community facilities, and low-income housing.
NCUA’s Community Development Revolving Loan Fund (CDRLF) is funded at $2 million, up from $1.5 million last year.
The CDRLF assists credit unions serving low-income communities to provide financial services, stimulate economic activities and operate more efficiently.
It also includes $18.5 million for the U.S. Agency for International Development’s Cooperative Development Fund, the same amount as last year.
The CDP is a global initiative that focuses on building capacity of cooperative businesses and cooperative systems for self-reliance, local ownership, and sustainability.
CUNA has requested it be increased in FY22 to $20 million.
Though non-binding, the President’s budget proposal serves as a starting point for Congress as they negotiate the final FY22 budget, and the funds’ inclusion is a reassuring sign for credit unions that serve in these markets.