WASHINGTON–Both credit union trade groups are now reviewing President Trump’s proposed $4.8-trillion budget plan for 2021 to see what is and isn’t included.
Specifically, once again the administration has opted to zero out any funding for the Community Development Financial Institution (CDFI) fund, just as it has in all of its prior proposals. In each case, the funding was later restored by Congress.
“With this Budget, the president presented his view of domestic spending, including a CDFI reduction to the same low level he has every year. However, Congress holds the purse strings, and CU Strategic Planning is confident that Appropriators from both parties will set CDFI funding at or above $260 million and NCUA’s valuable Community Development Revolving Loan Fund at $2 million, sadi Mike Beall, chief strategic and advocacy officer with CU Strategic Planning. "Our work is ahead, and we have already begun to build a case with Congress for the work that credit unions do for consumers and their communities."
Added NAFCU EVP and General Counsel Carrie Hunt, “Of course we will be looking for funding for the CDFI Fund, but also just making sure there are no surprises. We will be going through it with a fine tooth comb. The budget is just that—it’s the administration’s proposal. But it does give us clues as to what policymakers are thinking.”
The White House said its budget proposal would close the deficit by 2035. The federal budget deficit passed $1 trillion in 2019, the first time it has done so in a single calendar year since 2012.
Also on the Washington agenda this week are several hearings, including testimony by the Federal Reserve chairman before the House today and the Senate on Wednesday; a hearing today in the House Ways & Means Committee on “The Disappearing Corporate Income Tax”; hearings in both the House and Senate on the federal budget; and a Wednesday hearing by the House Task Force on Artificial Intelligence on “Examining Ways to Reduce AI Bias in Financial Services.”
CUNA Sends Response to Crapo
Separately, CUNA has sent a response to Senate Banking Committee (SBC) Chairman Sen. Mike Crapo (D-Idaho) who requested public feedback on ways to address public health and money laundering concerns with cannabis banking.
As CUToday.info reported here, while the SAFE Banking Act has passed the House, Crapo has expressed his opposition in the Senate.
In the letter, CUNA President/CEO Jim Nussle says the Secure and Fair Enforcement (SAFE) Banking Act can be modified to address most of Chairman Crapo’s concerns in a manner consistent with the narrow objectives the bill was designed to achieve.
“We urge you to continue to advance the SAFE Banking Act through the Senate Banking Committee’s consideration process in order to allow the proposed changes to be considered as amendments that all of the members of the Committee can vote upon,” Nussle wrote. “Enactment of this bill would offer much-needed, narrowly targeted federal protections for credit unions and other financial institutions who accept deposits from, extend credit to, or provide payment services for an individual or business engaged in cannabis-related commerce in states where the activity is legal ─ as long as the activity is compliant with all other applicable laws and regulations. CUNA strongly believes that federal legislation providing these protections is essential to bringing revenue from state-sanctioned cannabis entities and hemp businesses into the financial services mainstream and, as a result, keeping communities safe by removing vast amounts of cash off the streets.”
Long-Time CU Supporter to Be Honored
Meanwhile, the House of Representatives has voted to name the U.S. Postal Service facility in Farmville, N.C. after a longtime supporter of credit unions in Congress.
The new Walter B. Jones Jr. Post Office is named for the former Republican from North Carolina who passed away in February 2019. Jones was a lifelong resident of Farmville, N.C. and a longtime champion of the credit union movement, Jones was bestowed with the moniker “Credit Union Jones,” which he wore with pride, CUNA noted.