WASHINGTON — The government will have more money to lend to credit unions as a result of an increase in the cap on the Central Liquidity Facility approved by Congress over the weekend.

The continuing resolution to fund the government contains a provision that eliminated the artificial cap on the Central Liquidity Facility's lending capabilities. Currently, it is capped at $1.5 billion and the change would allow the facility to lend money to credit unions based on the formula established in the Federal Credit Union Act, which is estimated to be $41.5 billion.

NCUA and the credit union trade groups pushed hard for including the provision.

“I am extremely pleased that Congress has responded favorably to our request that NCUA be given authority to lend to its statutorily set Central Liquidity Facility loan level, which is now $41 billion,” NCUA Chairman Michael E. Fryzel said. “The careful case that we built in asking for the authority was based on the concept that I wanted to be proactive and preventative, rather than reactive during a crisis, and I commend Congress for providing NCUA an additional tool with which to address liquidity needs that may develop.”

CUNA and NAFCU both praised the congressional action and said it will help both the government and credit unions during difficult times, such as the current economic slowdown.