Appropriations Subcommittee Reorganization Could Impact CDRLF, CLF Funding

WASHINGTON-Jurisdiction over funding of two NCUA programs is up in the air while the House and Senate Appropriations Committees iron out how to restructure their subcommittees. NCUA submits `notebooks' annually for budgetary requests that include justifications for the Community Development Revolving Loan Fund and the Central Liquidity Facility, NCUA Director of Governmental and Congressional Affairs Cliff Northup explained. Though the reports are not required, committee members request them as preparatory material, he said, and it provides a good opportunity to demonstrate specifically how the funds are used. However, the possible dissolution of the Veterans Affairs, Housing and Urban Development, and Independent Agencies Subcommittee, which oversees funding for the CDRLF and CLF, has handed NCUA staff a number of challenges. "We're getting that material together, but we don't know who to send it to," Northup said, highlighting the primary issue. Roll Call, a Capitol Hill newspaper, reported recently that plans to reorganize the Appropriations Committees are moving forward. The House has proposed eliminating three subcommittees, including possibly VA-HUD, and divide up the responsibilities among the remaining 10. Though the House committee has been the driving force, the committees from both chambers have agreed to work together on a resolution. Additionally, whatever the subcommittee that does end up with jurisdiction over funding the CDRLF and setting the borrowing authority on the CLF, the members may not be familiar with the programs, which will require personal visits and education efforts, he said. "I don't expect any problems ultimately," Northup forecast. On a positive note, he added that it could create new friends and allies in Congress. Northup explained that the CDRLF currently has about $13 million available for loans to low-income credit unions, so any subcommittee changes definitely will not impact this calendar year. NCUA is requesting $1 million in funding for the CDRLF and $1.5 billion for the CLF's borrowing authority. The agency actually supports removing the cap on the CLF, Northup said, and if subcommittee changes are made, this could be a good time to raise the issue again with new members. The current subcommittee chairs are pretty well decided at this point, he said.