NAFCU Letter to House Appropriations Committee Regarding Tomorrow’s Markup

June 19, 2012

The Honorable Harold Rogers                                 
Chairman                                                                   
House Appropriations Committee                             
United States House of Representatives                  
Washington, D.C. 20515                                          

The Honorable Norman Dicks
Ranking Member
House Appropriations Committee
United States House of Representatives
Washington, D.C. 20515

Dear Chairman Rogers and Ranking Member Dicks:

On behalf of the National Association of Federal Credit Unions, the only trade association exclusively representing the interests of our nation’s federal credit unions, I write today with respect to tomorrow’s full Appropriations Committee mark-up of the FY 2013 Financial Services and General Government spending bill. As you know, nearly 94 million Americans rely on credit unions to meet their financial service needs.

NAFCU recognizes the budget constraints that all levels of government face during these tough economic times and appreciates the Committee’s efforts in funding the Treasury Department’s Community Development Financial Institutions (CDFI) fund at the FY 2012 enacted level of $221 million.  The community-based financial institutions participating in the CDFI are working to create and retain jobs and it would be damaging to the economic recovery to reduce the initiative’s funding at this time.

NAFCU is hopeful that the Community Development Revolving Loan Fund (CDRLF) will also be adequately funded in FY 2013. As you know, the CDRLF is fundamental in providing low-income designated credit unions the opportunity to obtain loans and technical assistance grants to improve services to their members.  The result is affordable financial services products for those in danger of being unbanked and the ability of credit unions serving those of modest means to keep assets in the community.  NAFCU was disappointed to find that the subcommittee mark up left this program funded at just $500,000, which is less than half of the amount requested in the President’s Budget. We ask that you take this important program into consideration as you finish your work.

Finally, NAFCU would like to reiterate its support for ensuring that the Central Liquidity Facility (CLF), managed by the National Credit Union Administration (NCUA), can continue its role as a back-up liquidity provider.  NAFCU believes that by continuing to not impose a cap and allowing the CLF to lend up to its statutory authority, credit unions will be better equipped with the liquidity they need for planning and contingency purposes.  This fund is critical in helping credit unions survive unique circumstances that can arise on a regional or local basis.  

Should you have any questions or require additional information, please do not hesitate to contact myself or NAFCU’s Vice President of Legislative Affairs, Brad Thaler, at (703) 842-2204.

Sincerely,

Fred R. Becker
President and CEO

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