Credit unions have tapped taxpayers’ funds

Credit unions have received taxpayer money, despite statements to the contrary.

Recently, Richard T. Webb wrote Credit Union Times that “[c]redit unions have never cost the tax payers [sic] a single penny and will not going forward.”

The comment was made with respect to credit unions being subject to the Consumer Financial Protection Bureau (CFPB) and the controversy over CFPB leadership.

However, this statement fails to take into consideration that credit unions have been beneficiaries of Congressional appropriations.

For example, credit unions can receive funds from the National Credit Union Administration’s Community Development Revolving Loan Fund and the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund. For example, 56 credit unions in 2017 were awarded $39.5 million in CDFI Funds. Both programs receive taxpayer funding from Congress.

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