Last week the president’s budget FY2018 budget called for the funding of the Community Development Financial Institutions (CDFI) grant program to be cut altogether from the U.S. Department of the Treasury’s budget. Credit unions and other financial institutions can be certified CDFIs by the U.S. Treasury, if they meet certain requirements.
According to the U.S Treasury, the CDFI Fund “plays an important role in generating economic growth and opportunity in some of our nation’s most distressed communities. By offering tailored resources and innovative programs that invest federal dollars alongside private sector capital, the CDFI Fund serves mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities”.
As of Jan. 31, credit unions make up 287 of the 1,075 certified CDFIs nationwide, according to the CDFI Fund. New Jersey has five credit unions currently CDFI approved. As advocates of programs that help credit unions access resources that help them better serve their members, NJCUL is standing with CUNA and other trade organizations in pledging to support funding for the U.S. Treasury’s CDFI Fund. Although the president's budget represents the administration's wish list as Congress enters the appropriations process, ultimately, Congress will make decisions about funding programs and agencies.
The president’s budget calling for the defunding of the Treasury’s CDFI Fund comes at a time when the NCUA, has actively campaigned this past year encouraging credit unions to apply for CDFI certification. NCUA provides regulatory oversight for federal and federally-insured credit unions. The agency recently announced this year’s first round of the CDFI Certification process open to low-income credit unions. With access to CDFI funding and resources, credit unions can extend their reach and expand access to affordable financial services to their members.
Questions, contact NJCUL’s Vice President of Compliance and Regulatory Affairs at firstname.lastname@example.org or call 1-800-792-8861, ext. 112.
in Compliance & Regulatory News