The Credit Union National Association (CUNA) voiced its opposition Wednesday to proposed cuts by the Trump Administration to a program that finances affordable housing.
The Trump Administration proposes $151 million in cuts to the Capital Magnet Fund, which is part of the Treasury’s Community Development Institutions (CDFI) Fund.
Many credit unions use grants from the Capital Magnet Fund to finance affordable housing solutions and community revitalization efforts in low-income communities throughout the country.
“CUNA strongly opposes 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,” CUNA President and CEO Jim Nussle said. “CUNA will continue our engagement with appropriators and other officials to ensure these important funds remain available for credit unions and other CDFIs that support community revitalization.”
The Trump Administration had zeroed out the CDFI Fund earlier this year in its fiscal year 2018 budget, but CUNA and other groups had advocated for that funding to be restored. Congress passed a fiscal year 2018 omnibus bill in March that funded the CDFI Fund at $250 million, a $2 million raise from the previous year.
However, the Administration sent a $15 billion rescission package to Congress last week, which included the Capital Magnet Fund.