Credit Union Program, CDFI, CFPB Budgets on Chopping Block
The House Appropriations Committee today is considering a spending bill that would cut the NCUA’s Community Development Revolving Loan Fund by 75% and 19% from the Treasury Department’s Community Development Financial Institutions Fund.
The panel’s Subcommittee on Financial Services approved legislation allocating $500,000 to the CDRLF, even though President Obama requested $2 million. The president had requested $227.2 million for the CDFI but the subcommittee only allocated $183 million. CUNA and NAFCU both wrote letters to the panel urging full funding for the programs.
The subcommittee also placed a $200 million cap on how much the Federal Reserve can transfer to the Consumer Financial Protection Bureau to fund the bureau’s operations. Dodd-Frank, which created the bureau, authorized the Fed to transfer as much as $500 million to fund the bureau.
If the full committee approves the changes it will go to the full House for a vote, and then the Senate will take up the measure.