President Joe Biden’s budget request for fiscal year 2025 contains $325 million for the Treasury’s Community Development Financial Institutions (CDFI) Fund, an increase of $1 million from the 2023 level. Credit unions are 516 of the 1,460 certified CDFIs nationwide—the largest proportion by financial institution type.
Certified CDFIs can apply for awards and grants through the CDFI Fund which provides technical and financial assistance awards and grants designed to expand financial access for underserved communities.
The budget also requests $4 million for NCUA’s Community Development Revolving Loan Fund—which funds a revolving loan program and a technical assistance program—and $216 million to fund the Treasury’s Financial Crimes Enforcement Network.
Of note, Pravina Raghavan began her tenure as CDFI Fund director Monday; an acting director had been in place for the fund since May 2023. Raghavan previously held positions within the Commerce Department and U.S. Small Business Administration, the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership Program, and New York state’s economic development agency. In her role at Empire State Development, she was instrumental in supporting CDFI partnerships.
In December, Treasury released the revised CDFI Certification Application, which reflected several changes CUNA and NAFCU—prior to merging into America’s Credit Unions—successfully advocated for.
America’s Credit Unions also reiterated its priorities for the CDFI Fund ahead of Treasury Secretary Janet Yellen’s congressional testimony last month.
