NAFCU advocates full budget for Community Development Financial Institutions Fund

The National Association of Federally-Insured Credit Unions (NAFCU) is advocating the Community Development Financial Institutions (CDFI) Fund receives full budget funding to ensure credit unions can better serve their communities.

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The NAFCU indicated the position stems from the House of Representatives Appropriations Committee’s recent release of its fiscal year 2024 financial services and general government (FSGG) funding bill reducing the CDFI budget to $278 million.

According to the NAFCU, the FSGG bill would provide $3.5 million for the NCUA’s Community Development Revolving Loan Fund (CDRLF). President Joe Biden’s 2024 budget proposal included $341 million for the CDFI Fund, representing a 5 percent increase from the 2023 enacted level and $4 million for the CDRLF.

The NAFCU indicated it supports legislation to amend the Riegle Community Development and Regulatory Improvement Act to require the Treasury Secretary or their designee to testify about the Community Development Financial Institutions (CDFI) Fund before both the House Financial Services Committee and the Senate Banking Committee annually.

Additionally, the NAFCU noted Vice President of Legislative Affairs Brad Thaler previously forwarded correspondence to lawmakers expressing support for the amendment legislation, stating that it would help enable Congress to ensure the CDFI is executing its intended mission to help low-income and underserved communities.