The Trump administration has proposed a rescission of funds previously appropriated for the U.S. Department of the Treasury’s Bank Enterprise Award Program and $151 million in 2018 funding for Capital Magnet Fund. The U.S. Treasury Department’s Community Development Financial Institutions Fund administers the CMF, and the CMF provides grants to CDFI credit unions to finance affordable housing.
Just two months ago, Congress passed the fiscal year 2018 omnibus bill. After an early version of the budget proposed eliminated funding of the Community Development Financial Institutions Fund, the budget deal included $258 million in funding for the CDFI fund.
Cathie Mahon, Federation President/CEO, joined CUNA, NAFCU and other major trade associations in speaking out against the proposed cuts:
"The rescission of funding for BEA and Capital Magnets will directly impact consumers in low-income communities served by CDFI certified credit unions."
"Over the years, the BEA has helped to stimulate millions of dollars in deposits for low-income credit unions enabling them to increase their lending for consumers," added Federation CEO Cathie Mahon. "These partnerships between banks and community development credit unions provide a rare and important example of how collaboration between our industries results in increased responsible lending for low-income consumers. The reduction of support for any of these CDFI Fund programs results in reductions in the access to credit, financial services, affordable housing and services and asset building strategies and supports in communities that need it most."
Read more: Proposed cuts to CDFI fund draw ire from credit unions, banks alike, Credit Union Journal, May 11, 2018