diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4cf82f7c..292ef1d4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -56,6 +56,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 - (community) [#1706] Add disable inflation upgrade to begin blocker that updates x/mint and x/kavadist params
 - (community) [#1729] Consolidate community funds from `x/distribution` and `x/kavadist` to `x/community`
 - (community) [#1752] Set `x/distribution` CommunityTax to zero on inflation disable upgrade
+- (community) [#1755] Keep funds in `x/community` in `CommunityPoolLendWithdrawProposal` handler
 
 ## [v0.24.0]
 
@@ -296,6 +297,7 @@ the [changelog](https://github.com/cosmos/cosmos-sdk/blob/v0.38.4/CHANGELOG.md).
 - [#257](https://github.com/Kava-Labs/kava/pulls/257) Include scripts to run
   large-scale simulations remotely using aws-batch
 
+[#1755]: https://github.com/Kava-Labs/kava/pull/1755
 [#1752]: https://github.com/Kava-Labs/kava/pull/1752
 [#1751]: https://github.com/Kava-Labs/kava/pull/1751
 [#1745]: https://github.com/Kava-Labs/kava/pull/1745
diff --git a/x/community/keeper/proposal_handler.go b/x/community/keeper/proposal_handler.go
index abd217dd..f6366b5a 100644
--- a/x/community/keeper/proposal_handler.go
+++ b/x/community/keeper/proposal_handler.go
@@ -19,22 +19,8 @@ func HandleCommunityPoolLendDepositProposal(ctx sdk.Context, k Keeper, p *types.
 
 // HandleCommunityPoolLendWithdrawProposal is a handler for executing a passed community pool lend withdraw proposal.
 func HandleCommunityPoolLendWithdrawProposal(ctx sdk.Context, k Keeper, p *types.CommunityPoolLendWithdrawProposal) error {
-	// hard allows attempting to withdraw more funds than there is a deposit for.
-	// this means the amount that gets withdrawn will not necessarily match the amount set in the proposal.
-	// to calculate how much is withdrawn, compare this module's balance before & after withdraw.
-	balanceBefore := k.bankKeeper.GetAllBalances(ctx, k.moduleAddress)
-
 	// withdraw funds from x/hard to this module account
-	err := k.hardKeeper.Withdraw(ctx, k.moduleAddress, p.Amount)
-	if err != nil {
-		return err
-	}
-
-	balanceAfter := k.bankKeeper.GetAllBalances(ctx, k.moduleAddress)
-	totalWithdrawn := balanceAfter.Sub(balanceBefore...)
-
-	// send all withdrawn coins back to community pool
-	return k.distrKeeper.FundCommunityPool(ctx, totalWithdrawn, k.moduleAddress)
+	return k.hardKeeper.Withdraw(ctx, k.moduleAddress, p.Amount)
 }
 
 // HandleCommunityCDPRepayDebtProposal is a handler for executing a passed community pool cdp repay debt proposal.
diff --git a/x/community/keeper/proposal_handler_test.go b/x/community/keeper/proposal_handler_test.go
index ebf01e49..b65bb382 100644
--- a/x/community/keeper/proposal_handler_test.go
+++ b/x/community/keeper/proposal_handler_test.go
@@ -120,10 +120,13 @@ func (suite *proposalTestSuite) FundCommunityPool(coins sdk.Coins) {
 }
 
 func (suite *proposalTestSuite) GetCommunityPoolBalance() sdk.Coins {
-	balance, change := suite.App.GetDistrKeeper().GetFeePoolCommunityCoins(suite.Ctx).TruncateDecimal()
-	// expect no decimal dust
-	suite.True(sdk.NewDecCoins().IsEqual(change), "expected no decimal dust in community pool")
-	return balance
+	ak := suite.App.GetAccountKeeper()
+	bk := suite.App.GetBankKeeper()
+
+	addr := ak.GetModuleAddress(types.ModuleAccountName)
+
+	// Return x/community module account balance, no longer using x/distribution community pool
+	return bk.GetAllBalances(suite.Ctx, addr)
 }
 
 func (suite *proposalTestSuite) CheckCommunityPoolBalance(expected sdk.Coins) {