WASHINGTON – The Senate Appropriations Committee has split with the House on the level of funding for the Community Development Financial Institutions Fund, but made appropriations for the Community Development Revolving Loan Fund and the Central Liquidity Facility in line with the House bill.
The Transportation, Treasury, Housing and Urban Development, and the Judiciary appropriations bill included $55 million for the CDFI. The House had set its appropriation at $40 million, while the White House wants to cut the fund and shift it under a program in the Commerce Department, which credit unions have opposed.
"The program enjoys broad participation from many different types of financial institutions, with credit unions participating in growing numbers each year," NAFCU President and CEO Fred Becker wrote. "CDFIs help the economy. The Treasury Department has testified that for every $1 CDFIs receive through a CDFI Fund program, they leverage, on average, $21 in private sector investment. With the rebuilding in the Gulf Coast after last year's hurricanes and today's uncertain world, we do not believe that it is prudent to cut CDFI funding."
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Like the House passed bill, the Senate Appropriations Committee approved $941,000 for the CDRLF-the amount NCUA had requested-and a $1.5 billion borrowing cap for the CLF. In a letter earlier in July, CUNA President and CEO Dan Mica sought $2 million for the CDRLF, but NCUA is exhibiting the fiscal responsibility that is being advocated government-wide under the current administration; the agency has typically requested and received $1 million in the past.
According to the CDFI coalition, a group of organizations including the National Federation of Community Development Credit Unions and Self-Help that promote the work of CDFIs, it is unclear if the Senate will take up the appropriations bill before the August recess.
Even after the Senate passes a bill, it would still need to be reconciled with the House bill in a bicameral conference.
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