July 14, 2017

Reg relief measures, CDRLF funding in committee-passed approps bill

[UPDATED] The House Appropriations Committee worked late into the evening Thursday marking up a fiscal 2018 spending package on financial services and general government. The approved bill contains some NAFCU-backed regulatory relief but reduces funding for the Community Development Financial Institutions Fund. But NAFCU-sought funding for the NCUA Community Development Revolving Loan Fund was restored.

The package, reported favorably out of committee on a vote of 31-21, awaits House action.

During mark-up, a NAFCU-backed amendment was introduced to fully fund the CDFI Fund to fiscal 2017 levels, but it failed along a 22-30 party-line vote. NAFCU had also urged restoration of CDRLF funding, and a managers amendment approved late last night restored $2 million to that fund.

Other amendments, both urged by NAFCU, were also offered to change the CFPB's governance from a single director to a five-person commission and to keep the NCUA's funding out of the appropriations process. Both were ultimately withdrawn without a vote as members pledged to keep working on them.

Discussing the CFPB's structure, panel members said that is an issue that must be resolved.

NAFCU will continue to pursue its recommended changes to the package as it moves through the legislative process.

In a letter to the committee Wednesday, NAFCU urged the panel to approve $250 million in funding for the CDFI Fund, restore funding for the NCUA's Community Development Loan Fund, provide for a five-member CFPB commission and keep the NCUA out of appropriations.

However, the spending package does include, among other things, a NAFCU-supported measure that would remove the CFPB's authority to regulate for unfair, deceptive and abusive acts or practices (UDAAP).