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Congress passes spending bill, includes NAFCU-sought funding for community funds
The House and Senate have passed a $1.3 trillion spending bill that will fund the government through September and includes money for two community-focused funds used by credit unions. The president is expected to sign the measure, which must happen before midnight tonight to avoid a government shutdown.
The House voted 256-167 early Thursday afternoon to approve the omnibus spending bill; the Senate worked through procedural hurdles to pass the bill late last night.
In a win for credit unions, the omnibus spending bill includes NAFCU-sought full funding of $250 million for the Treasury Department's Community Development Financial Institutions (CDFI) Fund and $2 million for the NCUA's Community Development Revolving Loan Fund (CDRLF). President Donald Trump had proposed eliminating in both his 2018 and 2019 budget requests. NAFCU has urged Congress to fully fund the programs to ensure credit unions can continue to provide financial stability for low-income members and their families, as CDFI credit unions predominantly serve low-income areas and are often the only financial services option.
"We thank appropriators and congressional leadership for recognizing the importance of the CDFI Fund and the CDRLF program," said NAFCU Vice President of Legislative Affairs Brad Thaler. "NAFCU has worked to obtain full funding of these programs so that credit unions can continue to take advantage of their benefits for their members in underserved areas, and we are pleased to see Congress agree in the omnibus allocations."
The spending bill authorizes the National Flood Insurance Program (NFIP) through July 31. The House last year passed a five-year reauthorization and reform package for the NFIP, but the Senate has yet to act. The legislation also asks the Office of Management and Budget (OMB) to conduct a study on the cost of implementing the Dodd-Frank Act.
In addition, the bill increases the cap on Small Business Administration loan programs: 7(a) loans, which NAFCU has testified in support of, have a cap of $29 billion, and 504 loans have a $7.5 billion cap.
The House and Senate reached a deal last month to fund the federal government for two years, but funds still needed to be appropriated to their respective purposes before current funding expired tonight.