House passes FSGG bill w/ CUNA-supported funding levels
The House passed the Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2020 (H.R. 3351 Wednesday. CUNA wrote in strong support of the bill earlier this week due to the appropriations amounts for several credit union funds, including the Treasury’s Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund (CDRLF).
“We thank the House for passing the bill, and for the attention of House appropriators to ensure appropriate levels for several important funds that credit unions are able to leverage to better serve their members and communities,” said CUNA President/CEO Jim Nussle.
The bill funds the Treasury’s Community Development Financial Institutions (CDFI) Fund at $300 million for fiscal year 2020, a $50 million increase from last year. An amendment was adopted that essentially raises the fund level to $303 million. The fund makes capital grants, equity investments and awards for technical assistance to certified CDFIs.
As of June 14, credit unions make up 274 of 1,061 certified CDFIs nationwide.
The bill also allocates $2 million for for NCUA’s Community Development Revolving Loan Fund (CDRLF) for fiscal year 2020.
The CDRLF funds a revolving loan program and a technical assistance program that assists credit unions serving low-income communities to:
- Provide financial services to their communities;
- Stimulate economic activities in their communities, resulting in increased income and employment; and
- Operate more efficiently.