Trump budget spares credit union tax exemption; calls for restructured CFPB, elimination of CDFI Fund
President Trump’s proposed 2018 budget proposes a “restructuring” of the Consumer Financial Protection Bureau and eliminates the Community Development Financial Institution Fund, but also assumes the credit union tax exemption will remain in place for at least the next 10 years.
The $4.1-trillion budget for 2017 includes deep cuts in a number of programs, especially those that are aimed at lower-income Americans, and assumes 3% economic growth, which economists have already said is extremely unlikely.
The CDFI Fund has been consistently in the cross-hairs of the Trump Administration, which targeted it for cuts early on. Congress, however, has been inclined to provide money for the CDFI Fund, including $248 million in the recently passed bill to fund government operations. As of January 31, 2017, there were 287 credit unions certified as CDFIs.
In a statement following release of the president’s budget, which is really just a guide for what the administration wants since Congress controls the national purse-strings, NAFCU CEO Dan Berger said the association is “pleased that President Trump’s budget proposal does not single out the credit union tax exemption for elimination, and we will continue to work with Congress and the administration to protect the exemption throughout the tax reform process.”
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