The House Financial Services and General Government Subcommittee (FSGG) approved a FY2023 financial service spending bill that calls for $336.4 million for the CDFI program on June 16, higher than Biden administration’s $331 million request. This is an increase of more than $41 million from the current fiscal year.
Support was voiced for the increase by FSGG Subcommittee Chairman Mike Quigley (D-IL) and Appropriations Committee Chair Rosa DeLauro (D-CT), who both spoke of their support for CDFIs and their critical role in distressed and underserved communities. But a number of Republican FSGG members expressed disapproval of the overall increase in funding.
The full House Appropriations Committee will be marking up the bill on June 24. The Senate has not yet released its spending bills.
In a June 15 letter to the subcommittee, CUNA president Jim Nussle wrote in support of a $330 million appropriation, and supported President Biden’s proposed $5 billion in funding for the CDFI Fund to address the affordable housing crisis and $6 million for the Community Development Revolving Loan Fund. NAFCU president Brad Thaler also wrote on June 15, commending the subcommittee for its proposed increase. Thaler also brought up the issue of the current long delays that credit unions have been facing in responses to their certification applications, mentioning “This would seem to be contrary to the steps Congress is taking to try to expand the use of CDFIs to help communities in need.”
“We’re very pleased to see this support for CDFIs in the subcommittee’s spending bill,” said CU Strategic Planning’s Chief Experience Officer Mike Beall. “And greatly appreciate the advocacy of CUNA and NAFCU. CDFI credit unions provide much needed support to underserved communities, creating financial stability at a time it’s very much needed.”
CU Strategic Planning has secured $770 million in funding for CDFI credit unions since its inception in 2008, and in the most recent round of Financial Assistance awards its clients received awards averaging $109,274 higher than peers.