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The House on Thursday passed President Donald Trump's deficit-reduction rescissions package, which rescinds $142 million from the Community Development Financial Institutions (CDFI) Capital Magnet Fund (CMF) program. The CMF provides grants to help community institutions, such as credit unions, provide affordable housing solutions. NAFCU had urged lawmakers to fully fund the CDFI program.

The package now moves to the Senate where its future is uncertain.

Earlier this year, NAFCU's lobbying efforts secured full funding of $250 million for the Treasury Department's CDFI Fund for fiscal year 2018. While this funding was not targeted in the rescissions package, more CDFI funding could be a future target.

NAFCU has lobbied for Congress to fully fund the program in order to ensure credit unions can continue to provide financial stability for low-income members and their families, as CDFI credit unions predominantly serve low-income areas and are often the only financial services option.

The association has also met with the Treasury Department to discuss the importance of this program. In 2016, the NCUA and Treasury signed a memorandum of understanding to facilitate increased credit union involvement in the fund, with the aim of doubling the number of CDFI-certified credit unions.

NAFCU will continue to follow progress on this package and keep credit unions updated.