House Panel OKs Community Development Funds, CLF Borrowing Authority
The House Appropriations Committee has approved a 2013 spending bill that will maintain 2012 funding for the NCUA’s Community Development Revolving Loan Fund, although the $500,000 budgeted is less than the $1.18 million President Obama requested.
However, the committee on Wednesday funded the full $221 million requested by the president for the Treasury Department’s Community Development Financial Institutions Fund, and maintained full statutory borrowing authority for the Central Liquidity Facility.
NAFCU said in a release it supported full funding for both programs, which are used by low-income credit unions to strengthen operations and expand services in economically distressed areas.
NAFCU also said it supports allowing the CLF full access to its borrowing authority so it can meet credit unions’ needs to the greatest extent possible during times of tight liquidity.
The budget package was approved by voice vote and awaits action of the full committee.
After lending $18.5 billion in 2009, which included $10 billion to U.S. Central Federal Credit Union and Western Federal Credit Union to stabilize the two conserved institutions, the CLF only extended $5 million in credit in 2010, and $