CUNA calls for increased funding for critical programs for underserved

July 13, 2023

The Senate Appropriations Subcommittee on Financial Services and General Government’s (FSGG) FY24 bill includes funding for several critical programs that serve underserved communities, CUNA wrote to the subcommittee Thursday. The subcommittee is currently considering its bill.

“We urge the Subcommittee to increase funding in certain key areas. First, we continue to recommend that the Community Development Financial Institutions (CDFI) Fund receive an appropriation of $500 million in Fiscal Year 2024,” the letter reads. “In addition, we request that the Community Development Revolving Loan Fund (CDRLF) funding be increased to $6 million. Finally, CUNA requests more funding for the Financial Crimes Enforcement Network (FinCEN) within the U.S. Department of the Treasury.”

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.

Credit unions are 518 of 1,470 certified CDFIs as of June 15, the largest type of depository institution.

The CDRLF funds a revolving loan program and a technical assistance program.

CUNA also said the funding increase for FinCEN is needed.

“FinCEN plays a critical role in combatting money laundering and other illicit uses of the financial system that fuel international terrorism, cybercrime, corruption, human rights abuses, and the illegal trafficking of persons, drugs, weapons, wildlife, and more,” it reads “Crucially, FinCEN is also a key player in detecting any attempts to evade sanctions or US-imposed import restrictions related to the Russian Federation."

President Joe Biden released his FY24 budget request in March, which includes $341 million for the CDFI Fund and $4 million for the CDRLF.