January 21, 2014

Spending bill signed, delays NFIP premium hikes

President Obama signed the $1.1 trillion omnibus on Friday evening, avoiding a federal government shutdown and funding the government through Oct. 1.

The 2014 spending package includes language reflecting NAFCU's concerns regarding flood insurance premium increases and funding for low-income credit unions' community development efforts.

The measure includes a NAFCU-backed delay in some National Flood Insurance Program premium increases imposed under the 2012 Biggert-Waters Flood Insurance Reform Act; the delayed increases would affect properties impacted by flood plain remapping.

Regarding credit unions, the measure:

  • allows the NCUA Central Liquidity Facility full access to its statutory borrowing authority, which currently totals about $2 billion to meet credit unions' emergency liquidity needs;
  • provides $1.2 million for technical assistance grants to low-income credit unions from the NCUA Community Development Revolving Loan Fund; and
  • provides $226 million for the Treasury Community Development Financial Institutions Fund.

Credit unions with NCUA's low-income designation are authorized to seek grants and assistance from both the CDRLF and CDFI funds.

The Senate is expected to take up larger flood insurance delay measures as the next order of business. Also coming up for Congress is the looming debt ceiling, which Treasury Secretary Jack Lew says will be reached Feb. 7.