America’s Credit Unions President/CEO Jim Nussle wrote to the House Appropriations Subcommittee on Financial Services and General Government and the Senate Finance Committee ahead of its hearings on the president’s fiscal year 2025 budget proposal.
In the letter to the Senate Finance Committee, Nussle reiterated the importance of the credit union federal tax exemption. He noted the tax exemption allows credit unions to provide lower cost services to consumers while providing outsized economic value.
“Credit unions provide significant financial benefits to both their members as well as nonmembers. According to America’s Credit Unions’ analysis of NCUA and DataTrac data, credit unions provide $21.5 billion in total financial benefits annually to consumers and communities across the country through higher returns on savings and returns, lower loan rates, and fewer fees,” wrote Nussle.
In both letters, he recommended increasing funding for the Community Development Financial Institutions (CDFI) Fund from $325 million to $500 million. Nussle added the organization’s support for the budget’s proposed $500 million for the CDFI Bond Guarantee Program, which provides CDFIs better access to low-cost, long-term, fixed-rate capital.
Additionally, Nussle said America’s Credit Unions supports the $325 million budgeted for the Financial Crimes Enforcement Network, while requesting an increase for the NCUA’s Community Development Revolving Loan Fund. The budget currently proposes $4 million, while the organization supports a $6 million budget.
Congress released an agreement Thursday on funding several parts of the federal government through the end of FY24, which also contains several credit union priorities.
America’s Credit Unions will continue expressing support for full funding of programs that are important to credit unions and their over 140 million members.
