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Thaler to lawmakers: Fully fund the CDFI program
Ahead of a House Committee on Appropriations subcommittee hearing on the Treasury Department's FY2021 Financial Services and General Government budget request, NAFCU Vice President of Legislative Affairs Brad Thaler urged the subcommittee to fully fund the Community Development Financial Institutions (CDFI) Fund at its current levels or above. In the proposed budget, the Trump Administration recommends eliminating the CDFI Fund.
"As the Committee is aware, CDFI programs help promote access to capital and local economic growth in low-income communities," wrote Thaler. "CDFI credit unions predominantly serve low-income areas and other target markets and often are the only financial services options for consumers that live paycheck to paycheck."
"The CDFI Fund grant program helps credit unions serve communities and consumers that large banks do not focus on," Thaler added.
In all four of his proposed budgets, President Trump has tried to eliminate funding for CDFI Fund awards as they "are no longer needed given the maturity of the CDFI industry." The FY2021 budget also does not request appropriations for the Community Development Revolving Loan Fund (CDRLF). Congress provided funding for these two and other programs used by credit unions in the FY2020 government spending packages passed in December; those funds are currently set to expire Sept. 30.
Last year, Mara Falero, JetStream Federal Credit Union's vice president of marketing and communications, testified on behalf of NAFCU before a House Financial Services subcommittee on the important role MDI and Community Development Financial Institutions play in serving communities and members in need. See Falero's recommendations for Congress to allow credit unions to better serve more Americans.
Additionally, Thaler has previously shared with lawmakers credit unions' commitment to increase diversity, equity, and inclusion within the U.S. economy. Currently, there are three times as many minority-designated credit unions as banks, and there are 10 times as many female CEOs at credit unions than at banks.