However, subcommittee ranking Republican Tom Graves of Georgia noted that the bill also includes several hot-button issues, including a prohibition on Treasury Department funds being used to build a wall along the U.S. southern border.

He did not address the CDFI program, but said the overall appropriations bill spends too much money.

"You and I both know this will never be signed into law," he told Quigley.

CDFI advocates have been pushing for $300 million—a 20% boost–for the program in FY20.

"CDFI credit unions predominantly serve low-income areas and other target markets and often are the only financial services options for consumers that live paycheck to paycheck," NAFCU Vice President of Legislative Affairs Brad Thaler wrote in a letter to the subcommittee. "The CDFI Fund grant program helps credit unions serve communities and consumers that large banks do not focus on."

The bill also states that no funds for departments funded by the bill may be used to penalize a financial institution solely because it does business with a marijuana-related company as long as cannabis is legal in the state in which the institution is located.

While the Treasury Department is funded by the Financial Services appropriations measure, the NCUA and the FDIC are not.

As a result, the provision does not affect credit unions or banks.

While he applauded the subcommittee's decision, Rep. Ed Perlmutter (D-Colo.) one of the primary co-sponsors of the SAFE Act, a bill that would provide a safe harbor for financial institutions, said enactment of his plan is needed to allow marijuana-related companies to obtain financial services.

"The provision takes another step to protect financial institutions who are providing services to cannabis-related legitimate businesses," he said." I look forward to the House passing the SAFE Banking Act soon so we can fully address the issue and get this cash off the streets."

CUNA Chief Advocacy Officer Ryan Donovan said a broader safe harbor could be provided in the appropriations bill funding the Justice Department or Perlmutter's bill could be added to a funding bill.

"This is a good signal," he said. "But there's more work to be done."

CUNA and the American Bankers Association have endorsed Perlmutter's bill, while NAFCU said there are still issues that should be addressed before the legislation is enacted.