Removing Barriers Blog

CUNA Continues Advocacy Efforts for CDFI Funding
Posted May 15, 2019 by CUNA Advocacy

CUNA wrote to Chairman Kennedy and Ranking Member Coons prior to the Appropriations Committee's hearing to “Review the FY2020 Budget Request for the U.S. Department of Treasury.”  In the letter, CUNA urged the Committee to increase federal funding for the Community Development Financial Institutions (CDFI) Fund in fiscal year 2020 to $300 million.

The CDFI Fund was established in 1994 by the Riegle Community Development and Regulatory Improvement Act and is administered by the Treasury Department. It makes capital grants, equity investments and awards for technical assistance to community development financial institutions (CDFIs). Examples of CDFIs include community development banks, community development credit unions, community development loan and venture capital funds, and microenterprise loan funds. CDFIs are required to provide a 1:1 match for most of the awarded funds, which are offered on a competitive basis. CDFIs finance community development initiatives such as small businesses, community facilities, and low-income housing. The CDFI Fund also administers the New Markets Tax Credit program, which provides tax credits to Community Development Entities (CDEs) which in turn provide the tax credits to entities which invest in the CDEs.