January 14, 2014

CLF authority intact under 2014 spending bill

Jan. 14, 2014 – The $1.1 trillion spending package released by House-Senate negotiators Monday leaves the Central Liquidity Facility's borrowing authority unchanged from 2013, which means the facility can borrow up to 12 times its capital stock and surplus to meet credit unions' emergency liquidity needs.

That formula is set under the Federal Credit Union Act. As of last October, the CLF's borrowing authority totaled about $2 billion based on stock subscriptions, down from its $40 billion peak during the corporate crisis. NAFCU strongly supports allowing the CLF full access to its authority under the FCU Act.

The spending package, which still needs to clear the House and Senate, also provides $1.2 million for technical assistance grants to low-income credit unions from the NCUA Community Development Revolving Loan Fund.

Reports said the package also keeps funding for the president's healthcare initiative under the Affordable Care Act at sequester level, but builds in some flexibility in financing for health exchanges.