Through its PAL program, the NCUA permits federal credit unions to charge an interest rate of 1,000 basis points above the maximum interest rate established by the NCUA board and an application fee of not more than $20. The loan would need to be structured with a term of 46 days to six months, with substantially equal and amortizing payments due at regular intervals and no prepayment penalty. The minimum loan size would be $200 and the maximum loan size $1,000.

Appropriators also blocked an effort by Democrats to delete some 30 policy riders from the bill. The amendment would have canceled a plan to require the CFPB to conduct a more detailed study on arbitration agreements before issuing final rules.

The agency has released proposed rules, but critics have said the study the agency conducted did not meet the requirements Congress had established for such a study.

The payday amendment was very symbolic, according to John McKechnie, senior partner at Total Spectrum.

"I've never been one to underestimate the importance of symbolism in politics, so in that sense, this House committee action is important," he said. "And the fact that it was a bi-partisan amendment lends credence to the fact that payday lending is a very complicated issue, especially when it comes to lower income consumers."

He added, however, that the appropriations bill may not become law in its current form, so ultimately, the CFPB might be able to issue final rules.