Full Funding for the Community Development Financial Institutions (CDFI)
February 5, 2003
The Honorable Christopher Bond; Barbara Mikulski, Ted Stevens
United States Senate
Washington, DC 20510
Dear Chairman Bond:
On behalf of the Credit Union National Association (CUNA) and America's 82 million credit union members, I am asking for your help in providing full funding for the Community Development Financial Institutions (CDFI) Fund for FY2004. As you know, the Administration requested $51 million for the CDFI fund for FY2004 - a decrease of $17 million from the Administration's significantly low request in FY2003 ($68 million). Unfortunately, the CDFI Fund has faced drastic cuts in recent years and has been severely under-funded since the program's appropriation in FY2001, when it was funded at $118 million.
CUNA strongly supports an increase in this fund to a minimum of $80 million - the level the fund was appropriated at in FY2002 and the House Appropriations Committee recommended for FY2003. Credit unions believe the CDFI fund plays a critical role in promoting economic revitalization and community development by investing in, and assisting community development financial institutions. Therefore, I am asking for your leadership in securing a funding level of $80 million to ensure the CDFI fund will continue to provide credit, investment capital, and financial services in distressed communities.
Thank you for your consideration of this issue.
Daniel A. Mica
President & CEO