July 16, 2020

Committee sends CDFI, CDRLF funding bill to full House

Capitol domeThe House Appropriations Committee Thursday advanced the fiscal year 2021 financial services and general government (FSGG) bill to the full House without any amendments. Prior to the committee's markup of the bill, NAFCU had urged increased funding for the Treasury Department's Community Development Financial Institutions (CDFI) Fund and emergency monies for the NCUA's Community Development Revolving Loan Fund (CDRLF).

The FSGG bill includes $273.5 million for the CDFI Fund, which is an increase over FY2020's enacted $262 million amount but lower than the House-approved level of $300 million, and $2 million for the CDRLF.

The House is expected to consider its 2021 spending package – which includes the FSGG and 11 other appropriations bills – next week. NAFCU has advocated for increased funding as both programs allow low-income credit unions to better serve their members and communities and will continue to push for additional money as it heads to the full chamber, where amendments may be considered.

The House-passed HEROES Act – the chamber's Phase 4 coronavirus relief package that is not expected to be taken up by the Senate – included an additional $1 billion in emergency funding for the CDFI Fund, which NAFCU said "would allow more credit unions to access monies to provide specific programs to help their members."

The NCUA in April said it would use the majority of the 2020 CDRLF for coronavirus assistance. NCUA Board Member Todd Harper has requested Congress provide the fund with $10 million more for grants this year.