NEW YORK–Inclusiv is calling on Congress to restore funding levels for the Community Development Financial Institutions (CDFI) fund.
As CUToday.info reported here, the CDFI Fund’s budget would be reduced to $278 million—a reduction of $46 million--under the House fiscal year 2024 financial services and general government (FSGG) funding bill released by the House Appropriations Committee.
“This bill would slash funding to critical programs like the Community Development Financial Institutions (CDFI) Fund that provides vital funding to the CDFI credit unions and other CDFIs that specialize in serving low-income communities, communities of color and other under-resourced communities,” Inclusiv said. “CDFI credit unions provide affordable financial services, access to safe and affordable credit for households and micro/small businesses, and asset building tools to help people build wealth and achieve financial security. CDFI credit unions have a strong track record of promoting local economic development and job creation, and are a compelling example of the private sector magnifying the impact of federal investment.”
Inclusiv said the proposed cuts are coming despite continuing growth in the number of CDFIs and the “well-documented impact” of CDFIs that serve communities across the country. The organization is urging Congress to fund the CDFI Fund at the level proposed in the President's Budget, $341 million, at a minimum.
‘Critical’ For Economies
“CDFI credit unions serve communities across the country, providing safe and affordable loans to 17 million consumers and entrepreneurs. CDFI Fund investment is critical to strengthen local economies, creating jobs and building financial stability and opportunity for all," said Cathie Mahon, President/CEO of Inclusiv. "CDFI Fund awards to credit unions allow these critically needed institutions to grow, and are an efficient use of federal funding as CDFI credit unions lend an additional $12 in their communities for every $1 received in grant funding. Congress should ensure the CDFI Fund is funded at the level proposed in the President's Budget, at a minimum, so that the Fund can continue to effectively support equitable economic growth."
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