Newsroom
House passes additional CDFI, CDRLF funding, postal banking program
The House Friday passed its version of the fiscal year 2021 spending package, which included $273.5 million for the Treasury's Community Development Financial Institutions (CDFI) Fund and $2 million for the NCUA's Community Development Revolving Loan Fund (CDRLF).
Ahead of the vote, NAFCU urged lawmakers to support additional funding for the CDFI Fund and the CDRLF, which are used by credit unions to support low-income communities. NAFCU voiced support for an additional $1 billion in emergency funding for the CDFI Fund, which was included in the House-passed Phase 4 coronavirus relief bill, the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act).
Regarding the CDRLF, NCUA Board Member Todd Harper has called for at least $10 million more for grants in 2020, as the NCUA is unlikely to have enough funding to meet heightened demand due to the pandemic.
The spending package also included a provision that would create a pilot program for postal banking, which NAFCU has long opposed. The association holds that credit unions already offer loan products and savings mechanisms for their members and consumers are best served by institutions that can offer a full range of financial services and develop relationships with their members.
Last week, NAFCU joined with eight other financial services trade groups to oppose the inclusion of the proposed amendment that would create a postal banking pilot program.
NAFCU will continue to monitor the fiscal year 2021 spending package as it progresses through Congress and advocate for credit union priorities. The Senate, which is likely to draft its own funding bill, would need to reconcile its bill with the House-passed bill.