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Inclusiv supports fully funding the CDFI Fund
House Appropriations Bill could slash critical CDFI Funding
Yesterday, the U.S. House of Representatives Financial Services and General Government Appropriations Subcommittee held a markup to consider the FY24 Appropriations bill. This bill would slash funding to critical programs like the Community Development Financial Institutions (CDFI) Fund that provides vital funding to the CDFI credit unions and other CDFIs that specialize in serving low-income communities, communities of color and other under-resourced communities. CDFI credit unions provide affordable financial services, access to safe and affordable credit for households and micro/small businesses, and asset building tools to help people build wealth and achieve financial security. CDFI credit unions have a strong track record of promoting local economic development and job creation, and are a compelling example of the private sector magnifying the impact of federal investment.
The bill would reduce the CDFI Fund’s appropriations more than $45 million compared to FY23, from $324 million to $278.6 million, despite continuing growth in the number of CDFIs and the well-documented impact of CDFIs that serve communities across the country. Inclusiv urges Congress to fund the CDFI Fund at the level proposed in the President’s Budget, $341 million, at a minimum to ensure the Fund has the resources needed to advance its mission to “expand economic opportunity for underserved people and communities by supporting the growth and capacity of a national network of community development lenders, investors, and financial service providers.” Fulfilling this mission is key to ensuring all communities have access to the financial products and services they need to flourish.
“CDFI credit unions serve communities across the country, providing safe and affordable loans to 17 million consumers and entrepreneurs. CDFI Fund investment is critical to strengthen local economies, creating jobs and building financial stability and opportunity for all,” said Cathie Mahon, President/CEO of Inclusiv. “CDFI Fund awards to credit unions allow these critically needed institutions to grow, and are an efficient use of federal funding as CDFI credit unions lend an additional $12 in their communities for every $1 received in grant funding. Congress should ensure the CDFI Fund is funded at the level proposed in the President’s Budget, at a minimum, so that the Fund can continue to effectively support equitable economic growth.”