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House appropriators propose reducing CDFI Fund
The House Appropriations Committee released its fiscal year 2024 financial services and general government (FSGG) funding bill Wednesday, which would reduce the Community Development Financial Institutions (CDFI) Fund’s budget to $278 million. As more than 500 credit unions are CDFI-certified, NAFCU advocates for full funding to ensure credit unions can take advantage of the program to better serve their communities.
In addition, 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 – a 5 percent increase from the 2023 enacted level – and $4 million for the CDRLF.
House Republicans have indicated they will pursue budgets below the levels that were agreed upon in the debt ceiling package, which could complicate the appropriations process as both chambers work through funding issues.
While supportive of increased funding for the CDFI Fund, NAFCU is also engaged in efforts to increase transparency and clear communication from the fund as it revises the certification application and process. An amendment to require the CDFI Fund director to testify annually before Congress was introduced and withdrawn during a Senate Banking Committee markup Wednesday, a common way of drawing attention to an issue and getting commitments to work on it. Additionally, lawmakers – during the markup and in the subsequent hearing on Federal Reserve Board nominations – did discuss the importance of CDFIs in underserved communities.
NAFCU will continue to support efforts to hold the fund accountable and ensure CDFI credit unions can effectively participate in the fund and access its resources.