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House Passes Budget Package Rescinding $142 Million from CDFI
Friday, June 8, 2018 6:40 AM

The House on Thursday passed President Donald Trump's deficit-reduction rescissions package. The bill, squeaking by with a narrow 210-206 vote, rescinds the Community Development Financial Institutions (CDFI) Capital Magnet Fund (CMF) program, which awards grants available to CDFIs. The package now moves to the Senate.

Cornerstone supported CUNA's lobbying efforts in Congress to fully fund the program to ensure credit unions can continue to provide financial stability for low-income members and their families. CDFI credit unions predominantly serve low-income areas and are often the only financial services option.

“CDFI credit unions apply for and use awarded grants from the Capital Magnet Fund to finance affordable housing solutions and community revitalization efforts that benefit low-income individuals and communities nationwide,” wrote CUNA President/CEO Jim Nussle. “CUNA opposes this rescission from funds that have already been authorized, particularly funds that credit unions are able to leverage for much-needed affordable housing solutions in the communities they serve.”

"The Cornerstone Credit Union League supports funding for the CDFI program and the assistance it allows our credit unions to provide to members in low-income areas," Cornerstone President/CEO Caroline Willard.

In 2016, the NCUA and Treasury signed a memorandum of understanding to facilitate increased credit union involvement in the fund with the aim of doubling the number of CDFI-certified credit unions. Congress has previously protected the CDFI Fund from cuts and elimination and even added $250 million of CDFI funding ($2 million higher than the previous year) to the fiscal year 2018 omnibus appropriations bill after early versions zeroed out the fund.

As of April 31, credit unions make up 283 of the 1,079 certified CDFIs around the country.