House appropriations subcommittee on Thursday approved a FY2017spending measure that cuts the Community Development Financial Institutionsprogram 23% and makes the CFPB and NCUA subject to theappropriations process.

The Financial Services Subcommittee approved the bill by voicevote, amid Democratic objections to myriad policy riders, includingmany that the House passed as part of the Financial CHOICE Act.

Subcommittee chairman Todd Graves (R-Ga.) said he was pleasedthat the bill included the financial riders.

“I'm particularly excited about the financial reforms we'veincluded,” he said, adding “It's safe to say that this bill takes asignificant amount of power away from Washington.”

But Democrats blasted the inclusion of the policy riders.

“There is an appropriate place and time to debate these issues,”said subcommittee ranking Democrat Mike Quigley of Illinois. “Thiscommittee is not the proper place.”

Appropriations Committee ranking Democrat Nita Lowey of New Yorksaid Republicans were trying to “sneak” a repeal of the Dodd-FrankAct into the appropriations measure.

The policy riders would curtail many of the powers of the CFPB,including the repeal of its power to take action based on Unfair,Deceptive, Abusive Acts or Practices.

Some of the policy riders have been included in past versions ofHouse spending measures, but never have been accepted by theSenate.

The two Democrats also criticized the funding level for the CDFIprogram, saying it amounts to a $58 million cut. The TrumpAdministration has proposed eliminating the program. However, inthe FY2017 Continuing Resolution that is funding the federalgovernment, the spending level was set at $248 million.

Credit union trade groups said that while they are pleased withsome of the policy riders, they do not want the NCUA to be subjectto the appropriations process.

“While the regulatory relief provided by the bill is welcome,CUNA continues to have significant concerns about a provision thatwould move NCUA under the appropriations process, which could blurthe independence of NCUA and the credit union system,” said CUNAPresident/CEO Jim Nussle said. “A separate, independent federalregulator and insurer is critically important to the credit unionsystem, and we will work to ensure that the NCUA is not placedunder the appropriations process in a final funding bill.

Nussle also said that CUNA is very disappointed to the fundingcut for the CDFI program.

“The impact that credit unions make through those funds isindisputable and benefits communities across the country,” Nusslesaid. “These are programs that Congress should be investing morein, not less.”

NAFCU officials expressed similar sentiments.

“NAFCU appreciates lawmakers' inclusion of some regulatoryrelief, but we are continuing to focus on keeping the NCUA out ofappropriations,” said Brad Thaler, NAFCU's vice president oflegislative affairs., adding that the association also will bepushing for increases in CDFI funding.