CUNA, Leagues support bipartisan CDFI Fund transparency bill

Reps. John Rose, R-Tenn., and Brittany Pettersen, D-Colo., introduced CUNA and League-backed legislation that would require Congressional testimony on the Treasury’s Community Development Financial Institutions (CDFI) Fund’s operations and activities.

CUNA wrote Rose and Pettersen in support of the bill. 

“We thank Reps. Rose and Pettersen for their legislation to bring increased transparency and oversight to a vital source of capital for underserved communities,” said CUNA President/CEO Jim Nussle. “The bill strikes the appropriate balance between allowing the CDFI Fund to continue its important mission while adding additional chances to ensure it is operating in the best interests of all stakeholders.

“The Tennessee League is thankful to Rep. Rose for his leadership on this important issue. The CDFI Fund is critical to supporting consumers who need it most, and our credit unions that are CDFI certified want to focus on serving those consumers and the communities in which they live,” said Sarah Waters, chief advocacy officer of the Tennessee Credit Union League. “This bill will provide much-needed transparency and accountability for the Fund and allow our credit unions to continue to invest in underserved areas. This is especially important now as credit unions are truly helping to support low- and moderate-income communities in this challenging post-pandemic economy.

“The credit unions in the GoWest region are pleased that Rep. Pettersen is serving on the key, House Financial Services Committee. It’s impressive that after being appointed to that committee earlier this year, she’s already introducing important legislation,” said Ryan Fitzgerald, senior vice president of advocacy for the GoWest Credit Union Association. “Many credit unions, as Community Development Financial Institutions, (CDFIs), are doing impactful work in communities nationwide, and the legislation will give Congress the capability to receive transparent updates on the CDFI Fund when necessary.”

Specifically, the CDFI Fund Transparency Act would:

• Require an annual testimony, at the discretion of the chair, before the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee.
• Provides further discretion to the chair to convene such a hearing at the subcommittee level or full committee level.
• Require the Treasury Secretary, or their designee, to appear before the hearing.

Credit unions are 491 out of 1,422 total certified CDFIs as of April 14, the largest single type of depository institution.