House Panel Passes Spending Bill Cutting Community Development Funds, CFPB
The House Appropriations Committee on Thursday approved a spending bill that includes cuts in funding for the NCUA’s Community Development Revolving Loan Fund and from the Treasury Department’s Community Development Financial Institutions Fund.
On a 27-21 vote, the panel approved a $19.9 billion bill that allocates $500,000 to the CDRLF. This year, the fund received $1.25 million and President Obama requested $2 million for next year.
The measure also allocates $183 million for the CDFI. Obama requested $227.2 million.
CUNA and NAFCU both wrote letters to the panel urging full funding for both programs.
The spending bill 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. Last year’s financial overhaul bill, which created the bureau, authorized the Fed to transfer as much as $500 million to fund the bureau.
The bill now goes to the full House for a vote and then the Senate will take up the measure. A House-Senate conference committee will then reconcile the differences between the two chambers’ versions.