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CUNA Reports on CLF, CDRLF, CDFI Fund Spending in Obama 2016 Budget
Wednesday, February 4, 2015 6:20 AM

The Credit Union National Association has reviewed President Barack Obama's just-released annual budget proposal for fiscal year 2016. The budget is estimated by the Office of Management and Budget to represent total federal spending at $3.999 trillion for the year. CUNA has noted line items for programs of interest to credit unions.

For instance, the National Credit Union Administration's Central Liquidity Facility (CLF) is authorized by statute to lend up to 12 times its paid-in capital. Under the Obama administration's proposed budget for fiscal 2016, and using NCUA data, this would allow the CLF to borrow up to $5.1 billion in FY2016—up from $2.9 billion in FY2015.

The 2016 budget proposes to keep funding for the Community Development Revolving Loan Fund (CDRLF) at $2 million, a repeat of the 2015 funding level; and proposes an uptick in spending for the Community Development Financial Institutions Fund (CDFIF). If approved, $233.5 million in spending would be dedicated to this program—up from the FY2015 level of $230 million.

CUNA backs strong funding for these important programs because of the additional support credit unions can provide their members and communities through the grants, loans, and equity investments. For instance, CUNA notes that CDFI-funded credit unions offer alternatives to predatory payday lenders and check-cashing services and promote economic revitalization and community development in distressed communities.

The CDRLF is administered by the NCUA and is used to support low-income designated credit unions in providing basic financial and related services to their members and their communities; and CDRLF provides direct loans and project grants.

The CDFIF, under the U.S. Treasury Department's purview, makes capital grants, equity investments, and awards for technical assistance to community development financial institutions, such as community development credit unions.