The House on Thursday passed a massive FY18 spending measure that would keep the NCUA out of the appropriations process.

However, since the House version of the funding measure won’t become law, the bill, which would fund much of the federal government, serves as a marker for the House position on how the NCUA is funded.

The version of the bill, as approved by the House Appropriations Committee, would have subjected the agency to the annual funding process.

On Wednesday, the House approved an amendment that would keep the NCUA outside the annual appropriations process.

The House position conflicts with provisions of the Financial CHOICE Act, which would place the credit union agency in the annual funding process. That bill passed the House earlier this year.

The House passed the overall spending bill Thursday morning, 211-198.

While the House agreed to keep the NCUA out of the appropriations, it defeated an amendment that would have taken the CFPB out of the annual funding process.

As passed by the House, the legislation also contains several provisions of the Financial CHOICE Act, including plans to cut the powers of the CFPB.

There is little chance that the House bill will become law. Congress already has passed legislation that will keep the government funded until December. That bill did not address whether the NCUA should be part of the annual appropriations process.

In addition, the Senate Financial Services Appropriations Committee has not yet considered its version of the Financial Services funding measure.

These developments mean that Congress will have to revisit all funding issues in December, when the current Continuing Resolution funding much of the federal government expires.

Nonetheless, credit union trade groups hailed the NCUA amendment as a major victor.

“Placing NCUA under appropriations would be the functional equivalent of a hidden tax on credit unions and their members,” said CUNA President/CEO Jim Nussle.”

NAFCU officials also applauded the amendment’s adoption.

“The NCUA is an independent federal regulator funded by the nation's federally-insured credit unions, and today's amendment is important in preserving that independence," said B. Dan Berger, NAFCU’s president/CEO.

Instant Insights /

House Passes Bill Keeping NCUA Out of Appropriations Process

Related Stories

Recommended For You