Sept. 18, 2012 – The House last week cleared a continuing resolution that funds federal agencies and departments through March 27, and the Senate is expected to pass the measure.
The CR provides a 0.6 percent increase, to $1.047 trillion, in total federal spending from Oct. 1 through March 31, 2013. That $1.047 trillion cap is set by the 2011 Budget Control Act, the same statute that triggers the beginning of a 10-year reduction in the deficit, through sequestration, if Congress fails to act this year.
Congress’ failure to complete the 2013 appropriations doesn’t affect NCUA’s regulatory and insurance operations because those are supported by federal credit union operating fees and other non-tax sources. NCUA’s 2012 budget, which covers the period January through December, totals $234.9 million after the $2 million reduction approved in July under the mid-year budget review.
The appropriations process does affect the Central Liquidity Facility and Community Development Revolving Loan Fund – as well as the Treasury Community Development Financial Institutions Fund. The greater concern for the CLF, which was established to serve as a source of liquidity for natural person credit unions, is the looming wind-down of U.S. Central Bridge Corporate; read more.