Credit unions in the US have welcomed the news that lawmakers are planning to appropriate $324m for the federal Community Development Financial Institution (CDFI) Fund for the coming financial year.
This is a welcome reversal for the sector after the fund, which supports credit unions serving low-income and underserved areas through grants, certifications, and access to capital, was axed during last year’s federal shutdown, sparking an outcry from the credit union movement.
On 10 October, Donald Trump’s administration fired all 81 staff at the fund, but this decision was reversed the following month when the federal shutdown came to an end.
This move saw Trump sign new legislation requiring the Treasury to notify terminated CDFI Fund employees that they have been reinstated with full backpay.
In the latest development, House legislation has been released to appropriate the $324m for the fund.
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