NCUA Helps Rein in Federal Budget

ALEXANDRIA, Va.-Over the last two years, NCUA has requested less money from Congress for its Community Development Revolving Loan Fund program as part of the overall tightening of the federal budget. NCUA delivered its FY2007 Budget Justification Monday, Feb. 6, according to Director of Public and Congressional Affairs John J. McKechnie III, seeking $941,000 from the fiscal year 2007 budget for the CDRLF, the largest congressionally appropriated program at the agency. All of these funds go toward technical assistance grants for low-income credit unions. Interest income on previous loans fund future loans, McKechnie pointed out. In 2005, NCUA awarded $1,669,000 in loans and $949,219 in technical assistance grants. Last year, the agency had requested $950,000 for FY 2006, and got it. In previous years the agency had requested as much as $2 million for the CDRLF. It never actually received that much, but one time was approved for $1.5 million. Other than that, the CDRLF was usually appropriated $1 million. NCUA also has to request a borrowing authority for the Central Liquidity Facility each year as well, typically $1.5 billion as it did for FY 2007. The other congressional appropriation NCUA requests is money to cover administrative expenses for running the CLF, for which it asked for $331,000 for FY 2007. “We are pleased to once again report to Congress on the benefit of these appropriations which supports safety and soundness, and the good work of the nation’s credit unions in providing access to affordable financial services,” NCUA Chairman JoAnn Johnson said. “I appreciate the Senate and the House committees for their thoughtful review of the budget justification. These funds allow credit unions to continue to be a valuable financial partner for their members from all walks of life.”