Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Funding continuance has deep cuts for CDRLF CDFI
WASHINGTON (2/15/11)--House Republicans late last week introduced a continuing resolution to fund the government through the end of the fiscal year. H.R. 1 includes dramatic cuts for such programs as the Community Development Revolving Loan Fund (CDRLF) for credit unions and the U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund. A current funding extension expires March 4, and H.R. 1 would approve government spending from March 5 to Sept. 30. The proposal carries a $750,000 reduction from FY 2010 for the National Credit Union Administration’s CDRLF. It would appropriate $500,000 for that program, which is a whopping $1.5 million less than the $2 million requested by the Obama administration. The CDRLF provides loans and technical assistance to federal and state credit unions that are designated as a low-income credit union, as defined by NCUA regulations. H.R. 1 also proposes $50 million for the CDFI Fund, which is a cut of about $197 million from the FY2010 level of just less than $247 million. The administration sought $250 million in CDFI funding for FY 2011. The Treasury's CDFI Fund helps locally based financial institutions offer small business, consumer and home loans in communities and populations that lack access to affordable credit. According to the Treasury Department in January, credit unions represent 13% of the total applicant pool for the 2011 round of the CDFI Fund program. It is important to note that the House resolution addresses FY 2011 funding and is separate from the FY 2012 budget proposal released Monday by the President. While providing a good blueprint for Republican spending priorities, compromise will likely be the necessary path for a version of H.R. 1 to be accepted by the Senate, with its Democratic majority, and signed by the President. It is unlikely that the House and Senate would be able to come to agreement on these spending priorities by March 4, so it is likely that Congress will adopt another short-term extension of current funding levels.


RSS print
News Now LiveWire
Large CU stress testing on the agenda for the April @theNCUA open meeting http://t.co/2TUcnmCmPi
3 hours ago
#FinancialLiteracyMonth Test your college financial aid knowledge @nasfaa http://t.co/xgrDmHaw8W
11 hours ago
Join @theNCUA #NCUAchat with @KenWortheyJr on April 23 from 11am to 12pm EST http://t.co/TnNmfFh4Nl #FinancialLiteracyMonth
13 hours ago
Maine's patent troll bill has become law. Read more in Monday in @NewsNowLiveWire
15 hours ago
Wash. DFI discusses serving legal marijuana businesses with @NWCUA http://t.co/3kw79HJUYF
15 hours ago