The Senate Appropriations Committee yesterday approved a $46.4 billion spending bill that includes a provision giving the Central Liquidity Facility about $40 billion in borrowing authority and not be subject to a cap.
The House Appropriations Committee passed an identical bill earlier this week. The full House and Senate must now consider the measures.
Last year, Congress lifted the artificial cap on the CLF's borrowing capabilities. It had been capped at $1.5 billion (as it has been since 2001) and the change granted a higher limit of $41.5 billion for the current fiscal year, which runs through September. If Congress approves the subcommittee's recommendation, the CLF borrowing authority would be about $40 billion. The borrowing authority is based on a formula of 12 times the subscribed capital stock and surplus of the CLF.
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The House-passed measure also includes $1 million for the NCUA's Community Development Revolving Loan Fund and additional money for the CDFI Fund.
Congress created the Central Liquidity Facility in 1998. Membership is voluntary and credit unions that join purchase stock in it.
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