WASHINGTON–The credit union trade groups said they will fight language in a bill that places NCUA under the appropriations process. The language was included in a House financial services and general government (FSGG) appropriations bill.
That same bill also calls for heavy cuts to the Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund, both of which have been targeted by the administration and Congress this year, before Congress restored funding earlier in 2017. The FSGG bill cuts the CDFI Fund to $190 million and does not fund the NCUA’s CDRLF for fiscal year 2018.
CUNA President/CEO Jim Nussle issued a statement saying CUNA would push to remove the language related to NCUA’s and called on all credit unions to help restore funding to the CDFI Fund and CDRLF.
"While the regulatory relief provided by the bill is welcome, CUNA continues to have significant concerns about a provision that would move NCUA under the appropriations process, which could blur the independence of NCUA and the credit union system,” said Nussle. “A separate, independent federal regulator and insurer is critically important to the credit union system, and we will work to ensure that the NCUA is not placed under the appropriations process in a final funding bill.”
Regarding the two funds, Nussle said, “We are also very disappointed that the subcommittee proposes a significant reduction in the CDFI Fund and the elimination of new funding for the CDRLF. The impact that credit unions make through those funds is indisputable and benefits communities across the country. These are programs that Congress should be investing more in, not less. As the appropriations process proceeds, we urge credit unions, their employees, volunteers and members to engage their Representatives and Senators and urge full funding of these important programs.”
CUNA reminded that certified CDFIs can apply for grants and other awards through the Treasury’s CDFI Fund. As of May 31, credit unions make up 309 of 1,115 certified CDFIs, the trade group said.
The CDRLF assists credit unions serving low-income communities to provide financial services to their communities, stimulate economic activities, and operate more efficiently. Specifically, it funds a revolving loan program and a technical assistance program.