WASHINGTON—Lawmakers in the House have passed the fiscal year 2020 financial services and general government (FSGG) appropriations bill, which includes funding for credit union community programs.
CUNA and NAFCU had sent letters of support for the legislation to Congress, citing the bill’s impact in funding for several credit union funds, including the Treasury’s Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund (CDRLF).
“We thank the House for passing the bill, and for the attention of House appropriators to ensure appropriate levels for several important funds that credit unions are able to leverage to better serve their members and communities,” said CUNA President/CEO Jim Nussle.
The bill funds the Treasury’s Community Development Financial Institutions (CDFI) Fund at $300 million for fiscal year 2020, a $50 million increase from last year. An amendment was adopted that essentially raises the fund level to $303 million. The fund makes capital grants, equity investments and awards for technical assistance to certified CDFIs.
As of June 14, credit unions made up 274 of 1,061 certified CDFIs nationwide.
$2 Million for CDRLF
The bill also allocates $2 million for NCUA’s Community Development Revolving Loan Fund (CDRLF) for fiscal year 2020.
The CDRLF funds a revolving loan program and a technical assistance program that assists credit unions serving low-income communities to:
- Provide financial services to their communities
- Stimulate economic activities in their communities, resulting in increased income and employment
- Operate more efficiently
in response to the bill's passage, Mike Beall, chief strategic & advocacy officer at CU Strategic Planning, said, "Credit Union Strategic Planning has been focusing our outreach on both House and Senate Appropriators for most of the year. Now that the House has passed a bill with an impressive $303 million for FY2020, we are confident that the Senate will respond positively to our pro-growth, pro-empowerment message, just like the House did.”