WASHINGTON–A bipartisan congressional agreement on a bill providing $1 trillion in funding to keep the federal government operating through the end of September includes $248 million to fully fund the Community Development Financial Institutions (CDFI) Fund.
As CUToday.info reported here, The Trump Administration’s preliminary budget had called for eliminating the CDFI Fund. The announced budget cut led to a strong lobbying effort by both trade groups, CDFI credit unions and others to restore the funding, which is primarily used by CUs serving low-income communities.
As of January 31, 2017, there were 287 credit unions certified as CDFIs. A vote on the bill, which would avert a government shutdown, is expected by the end of the week.
CUNA’s chief advocacy officer, Ryan Donovan, said the group is “very pleased” with the restored funding.
The omnibus bill also includes $2 million for NCUA’s community development revolving loan fund, which Donovan said CUNA is also “very pleased” to see.
Meanwhile, also included in the enormous piece of legislation is report language that has had the backing of the credit union trade groups that asks the CFPB to report back to the Appropriations Committee on how it is using its exemption authority related to small entities, such as credit unions, and further how it has “carefully tailored” rules to limit the regulatory burden.
“This is critical language we have bene working on for more than a year,” noted Donovan. “We’re very pleased to see this. It’s an example of the success of a 360-degree advocacy approach.”
In addition, the proposed budget also includes language calling on the CFPB to better engage with stakeholders on its small dollar lending proposal, and urges the FCC to revisit its order on the Telephone Consumer Protection Act.
NAFCU thanked lawmakers for the adjustments to the spending bill.
"Credit unions, as not-for-profit, cooperative financial institutions, strive each day to deliver financial services that are in the best interests of all their members," said NAFCU President and CEO Dan Berger. "NAFCU strongly supports the CDFI Fund and the Community Development Revolving Loan Fund, each of which provides low-income designated credit unions critical funding to meet the needs of members in economically distressed communities."