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Ahead of the House Appropriations Committee’s scheduled markup of its recently unveiled Fiscal Year 2023 Financial Services and General Government (FSGG) appropriations bill, NAFCU Vice President of Legislative Affairs Brad Thaler Thursday wrote to the committee to express support for the inclusion of $336.4 million in funding for the Community Development Financial Institutions (CDFI) Fund and $4 million in funding for the Community Development Revolving Loan Fund. 

“These programs have proven to be an invaluable means of providing financial services to underserved areas and demonstrated their worth during the pandemic,” noted Thaler. “Congress has already recognized their worth in previous coronavirus response legislation, and we thank you for your continued commitment to these important institutions.”

Thaler also shared difficulties that NAFCU credit union members have been experiencing with the CDFI Fund, specifically with delays in application for certification and losing certification status without the opportunity to re-qualify. Additionally, Thaler noted that the CDFI Fund is currently making changes to the certification process that would make it more difficult for small and minority depository institution credit unions to become certified.

“This would seem to be contrary to the steps Congress is taking to try to expand the use of CDFIs to help communities in need. We encourage the Committee to examine this issue and consider adding in report language that would require the CDFI Fund to address these concerns,” wrote Thaler.

Lastly, Thaler reiterated the association’s support for the NCUA’s call to make permanent its authorities for the Central Liquidity Facility granted under the CARES Act and encouraged the Committee to use the FSGG appropriations bill as a vehicle to address the issue.

“Making these changes permanent would provide regulatory certainty for federally-insured credit unions and grant the NCUA additional flexibility to safely manage access to emergency liquidity,” concluded Thaler.

In addition to what Thaler addressed in the letter, the appropriations bill would also boost IRS funding to $13.6 billion for the IRS, a $1 billion increase from its current funding level, and is $2.2 billion lower than President Joe Biden’s IRS budget request. Of note, spending on enforcing tax laws would rise by $682 million and taxpayer services would jump to $3.4 billion, a 9 percent annual increase to tackle the agency’s current processing delays and unanswered phone calls.

The markup is slated to begin at 9:00 a.m. Eastern and will be available via livestream. NAFCU will monitor the markup and keep credit unions up-to-date on these issues via NAFCU Today. Read Thaler's full letter.