WASHINGTON—Congress is now expected to pass a huge new spending package that will not only keep the government open, it also includes funding for a number of provisions backed by credit unions. At the same time, the fiscal year 2020 National Defense Authorization Act (NDAA) is on its way to the president for his signature without language that would have given banks similar access to military bases as credit unions enjoy.
The spending package is expected to pass by Friday in order to avert a government shutdown and provide funding through the rest of fiscal year 2020.
Congress last month passed a continuing resolution extending government funding to this Friday, Dec. 20. The House advanced two spending packages to the Senate that contain a dozen spending bills for various federal departments and agencies between them. The Senate is set to vote on the bills before Friday's deadline.
CU Priorities are Funded
The funding passed by the House includes funding for credit union priorities, including the Community Development Financial Institutions (CDFI) Fund, Community Development Revolving Loan Fund (CDRLF), and Small Business Administration (SBA) programs:
- $262 million for the CDFI Fund
- $1.5 million for the CDRLF
- $99 million for the SBA's 7(a) loan program to prevent fee increases
NAFCU Analysis
In its analysis, NAFCU noted other important inclusions:
- A seven-year reauthorization of the Export-Import Bank, which provides low-cost financing for overseas buyers of U.S. products
- A seven-year reauthorization of the Terrorism Risk Insurance Program
- An extension of the National Flood Insurance Program through the end of the 2020 fiscal year
- Provisions for some tax fixes and extenders
- Exclusion from gross income certain mortgage debt that has been discharged
- Treatment of mortgage insurance premiums as qualified residence interest for purposes of the mortgage interest deduction