Removing Barriers Blog

Proposed FY2018 Budget Zeros the CDFI Fund and NCUA’s CDRLF
Posted May 24, 2017 by CUNA Advocacy

Yesterday, the Office of Management and Budget (OMB) sent the Administration’s proposed fiscal year 2018 budget to Congress.  Similar to the President’s FY 2017 budget, the Community Development Financial Institutions Fund (CDFIF) was again zeroed out, and unfortunately the NCUA’s Community Development Revolving Loan Fund (CDRFL) was also zeroed out this time around.  These cuts in FY 18 would amount to $248 million and $2 million, respectively.  That is a relatively small sum in a $4.1 trillion proposed budget that includes $57.3 billion in cuts to various domestic discretionary spending programs.

In better news, the Budget proposal includes a restructuring of the Consumer Financial Protection Bureau (CFPB) and transitioning it to a place where it will operate under Congressional oversight and its appropriations process starting in FY 2019.  CUNA strongly supports this concept as long as the funding mechanism doesn’t result in credit unions and other financial institutions paying more than they already do for federal financial institution examinations.  CUNA is also grateful that the budget would also fund the Small Business Administration’s 7(a) and 504 loan programs at acceptable levels. 

As mentioned before, a team effort will again be necessary to keep the CDFIF fully funded for FY 2018, similar to the work done for FY 2017.   CUNA and the Leagues have already started a comprehensive plan to lobby the Senate and House Appropriations Committee, including engaging in a grassroots effort with CDFI credit unions.