Omnibus Bill Funds CU Priorities, Addresses CDFI Concerns

Source: CUNA

Congress released the text of an omnibus bill Tuesday morning that would fund the federal government through Sept. 30, 2023 and contains several credit union priorities. The Senate is expected to take up the bill first, with a House vote before government funding expires Dec. 23.

The bill contains language directing the Treasury’s CDFI Fund to consider and address concerns raised by CDFIs and stakeholders. CUNA has strongly engaged with the CDFI Fund this year—including a recent meeting with CDFI Fund Director Jodie Harris—to alleviate concerns over certification status.

The bill does not contain the text of the Credit Card Competition Act, a troublesome interchange bill that CUNA, Leagues, and credit unions fought to exclude from any year-end legislation.

This year’s bill also prevents a House proposal to expand a postal banking pilot program. CUNA strongly opposed the program, believing credit unions are already in an ideal position to meet the needs of the underserved.

The omnibus contains funding amounts for several other credit union priorities, including:

• $324 million for the Treasury’s Community Development Financial Institutions (CDFI) Fund (up from $295 million last year), which makes capital grants, equity investments and awards for technical assistance to certified CDFIs.  
• $3.5 million for NCUA’s Community Development Revolving Loan Fund (up from $1.545 million last year), which funds a revolving loan program and a technical assistance program.
• $18.5 million for U.S. Agency for International Development’s Cooperative Development Program (same as last year), a global initiative focused on building the capacity of cooperative businesses and cooperative systems around the world.

It also funds the National Flood Insurance Program through Sept. 30, 2023.

More on CDFI ...

• Related: CUNA requests meeting with Congressional leaders over proposed CDFI changes
• Related: Proposed CDFI methodologies could violate Equal Credit Opportunity Act