Removing Barriers Blog

FSGG Subcommittee passes Appropriations legislation with increase in CDFI funding
Posted June 04, 2019 by CUNA Advocacy

The House Appropriations subcommittee on financial services and general government passed its legislation for fiscal year 2020, legislation with several important credit union priorities addressed. Prior to the markup, CUNA wrote to Chairman Quigley and Ranking Member Graves urging the Committee to increase funding for the Treasury's Community Development Financial Institutions (CDFI) Fund. 

The legislation passed includes funding for the CDFI at $300 million for FY2020, a $50 million increase from last year's $250 million. 

The CDFI Fund makes capital grants, equity investments and other awards to certified CDFIs. As of May 1, there are 291 credit unions out of 1,083 certified CDFIs nationwide.

The legislation would also fund NCUA’s Community Development Revolving Loan Fund at $2 million for the CDRLF, which funds a credit union revolving loan program and a technical assistance program.

The legislation also contains language that would provide limited protection for financial institutions that serve legal cannabis businesses, by not allowing any funds appropriated in the bill to be used to penalize a financial institution providing services to such businesses.