Unified credit union voice calls for timely deployment of CDFI funds
Marshaling the unified voice of the credit union movement in support of consistent, streamlined Community Development Financial Institution (CDFI) support, America’s Credit Unions, the American Association of Credit Union Leagues and all state leagues wrote to Office of Management and Budget (OMB) Director Russ Vought Tuesday. The letter follows a Treasury proposal to OMB that would add a requirement to certain applications for CDFI Fund awards.
“CDFI Fund programs deliver an exceptional return on investment, bringing in more than $12 of private capital for every federal dollar,” the letter reads, noting that demand for those resources is at a historic high while CDFIs continue to manage credit risk effectively.
The proposed application change has not been approved. If implemented it could delay the release of awards, create uncertainty, and raise questions about how the information will be used.
“If a supplemental application is deemed necessary, we respectfully request that Treasury and OMB work quickly to ensure that institutions have the guidance necessary to comply and avoid any steps that would delay award announcements or reduce award amounts relative to the appropriations and program scoring already completed,” it adds.
America’s Credit Unions and the leagues stand ready to work with the Treasury and OMB to finalize a streamlined approach that preserves program integrity while prioritizing speed to impact.
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