Letter to Representatives Young, Walsh and Mollohan regarding Community Development Financial Institutions
July 10, 2003
The Honorable Bill Young, James Walsh, and Alan Mollohan
U.S. House of Representatives
Washington, DC 20515
On behalf of the Credit Union National Association (CUNA) and America's 84 million credit union members, I would like to reinforce credit unions' support of $80 million for the Community Development Financial Institutions (CDFI) Fund for FY2004.
As you know, the Administration requested only $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. 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. CDFIs offer low-cost loans, lower fee mortgages and other products along with financial education and counseling to individuals, businesses, affordable housing developers and community facilities. They promote private entrepreneurship, encourage self-sufficiency, and help build community assets.
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 across America.
Daniel A. Mica
President & CEO