President Trump Starts Budget Process for CDFI and CDRLF
CU Strategic Planning Confident of Full Funding in 2020
CU Strategic Planning’s Efforts to Educate Congressional Appropriators Have Paved Way for Record Funding Levels
As in previous years, President Trump opened the appropriation’s process with his budget. Presidential budgets reflect the view of the administration, but have been virtually ignored by the House and Senate as they set the actual appropriations process.
“Our work has already begun with appropriators of both parties to set funding at or above the current level of $260 million for CDFI funding to support the work credit unions do in their communities that benefit millions of working families” said Michael Beall, Chief Strategic and Advocacy Officer at CU Strategic Planning.
In 2019 the administration budget also called for near zero funding for the vital community development grant program, Republicans and Democrats in Congress saw value in the programs that credit unions and other CDFIs develop to serve low to moderate income families in their markets. Last year, NCUA even failed to make its appropriation request.
CU Strategic Planning has used a pinpoint strategy to make appropriators aware of the importance of CDFI funding, allowing credit unions to make innovative loans to low income consumers while using the CDFI grant funds to mitigate potential losses in their Allowance for Loan Loss (ALL) accounts or to increase net worth as they take on additional risk while balancing the pricing of loans to meet consumer demand. CDFIs and their programs help consumers avoid predatory lenders of all varieties.
“Our message is simple: every CDFI credit union needs to engage with Congress to ensure this appropriations process ends in a very different place than it begins every year, full funding for CDFI above $260 million and $2 million for NCUA’s CDRLF programs.” said Beall.
CU Strategic Planning is the leader in winning CDFI grant funding for credit unions, having won more than $120,000,000 for credit unions throughout the U.S.