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NAFCU opposes postal banking, shares support of CDFI, CDRLF funding with Senate leadership
NAFCU's Brad Thaler yesterday wrote to Senate Majority Leader Mitch McConnell, R-Ky., and Senate Minority Leader Chuck Schumer, D-N.Y., to share credit union priorities regarding a fiscal year 2021 spending package that previously passed the House.
In the letter, Thaler, NAFCU’s vice president of legislative affairs, called on lawmakers to oppose any inclusion of a proposed amendment to create a pilot program for postal banking in the fiscal year 2021 Financial Services and General Government (FSGG) appropriations bill.
“While the underlying bill has important funding provisions, we would like to express opposition to language that was added on the House floor to create a pilot program for postal banking," wrote Thaler. "We urge you not to include this provision in any appropriations packages the Senate considers."
The House-passed legislation also includes funding for the Community Development Financial Institutions (CDFI) Fund and the Community Development Revolving Loan Fund (CDRLF). In the letter, Thaler also reiterated NAFCU’s call for further funding for these programs, which are used by credit unions to support low-income communities.
Currently, funding for the CDFI Fund is slightly lower than what was allocated in the House version of the FY2020 FSGG bill, but above the final enacted FY2020 amount. The CDRLF money is on par with last year.
Thaler also noted NAFCU’s support for additional CDFI funding to create a CDFI Crisis Fund that would automatically provide capital during a natural disaster or economic crisis, and a proposal to provide money to help the CDFI provide jobs and neighborhood support to enable a faster and fuller recovery. He also noted the association’s support for additional emergency funding for CDFIs, similar to the $1 billion in emergency funding that was included in the House-passed HEROES Act.
NAFCU will monitor the FSGG appropriations bill as it progresses through the Senate and continue to highlight the benefits of CDFIs to Congress in supporting communities and advocate for additional funding for the CDFI Fund. The association has also previously advocated for additional set asides for CDFIs and smaller lenders such as credit unions in PPP funding.