The House on Thursday passed a massive FY18spending measure that would keep the NCUA out of the appropriationsprocess.

However, since the House version of the funding measure won’tbecome law, the bill, which would fund much of the federalgovernment, serves as a marker for the House position on how theNCUA is funded.

The version of the bill, as approved by the House AppropriationsCommittee, would have subjected the agency to the annual fundingprocess.

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

The House position conflicts with provisions of the FinancialCHOICE Act, which would place the credit union agency in the annualfunding 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 theappropriations, it defeated an amendment that would have taken theCFPB out of the annual funding process.

As passed by the House, the legislation also contains severalprovisions of the Financial CHOICE Act, including plans to cut thepowers of the CFPB.

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

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

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

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

“Placing NCUA under appropriations would be the functionalequivalent 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 thenation's federally-insured credit unions, and today's amendment isimportant in preserving that independence," said B. Dan Berger,NAFCU’s president/CEO.