House appropriators late Wednesday approved a FY19 Financial Services spending bill that would provide $216 million to the Community Development Financial Institutions program—a $25 million boost from the amount they proposed earlier this month.
The Appropriations Committee approved the bill, 28-20, with Democrats opposing the measure over a variety of factors
The bill also includes a provision that would delay the NCUA's Risk-Based Capital rule for two years.
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The $216 million for the CDFI program is still far short of the $250 million it received this year.
However, during Wednesday's markup of the bill, subcommittee Chairman Tom Graves (R-Ga.) said the funding level still exceeds the Trump Administration's request by some $202 million.
The $25 million boost was proposed by Rep. Steven Palazzo (R-Miss.) who made it clear it was the first step in ensuring funding for the program.
Credit union trade groups have been pushing for increased CDFI funding.
"The CDFI Fund is an important investment in America and we urge the full Appropriations Committee to support this program and its full funding," CUNA President/CEO Jim Nussle said in a letter to appropriators Wednesday.
The committee defeated by voice vote an amendment by Rep. Jose Serrano (D-N.Y.) to restore the membership of the CFPB's Community Advisory Board.
Serrano said it also would prohibit the CFPB director from firing members of the advisory board without just cause.
Acting CFPB Director Mick Mulvaney last week terminated the members of three agency advisory boards—the community bank and consumer boards, as well as the Credit Union Advisory Council.
Serrano said the firing of the members of the community board amounted to "petty terminations."
The committee also defeated proposals to allow financial institutions in states that have legalized medical marijuana to accept deposits from dispensaries without liability.
As approved by the committee, the bill also contains language that would delay the NCUA's Risk-Based Capital rule for two years. House Republicans have attached that language to at least two bills working their way through the House.
In a letter to appropriators, NAFCU Vice President of Legislative Affairs said the rule's delay is essential to credit unions.
"Dozens of credit unions stand to see a downgrade in their capital levels and more than 400 credit unions will see a decline in their capital cushions," he wrote.
NCUA Chairman J. Mark McWatters has endorsed a delay. However, fellow board member Rick Metsger said crises such as the problems that credit unions that are heavily invested in taxi medallions are having points out the need for a strong rule.
Senate appropriators often reject such legislative riders in appropriations measure, so its future remains unclear.
The House bill also would make the CFPB subject to the annual appropriations process. House Republicans have tried to attach that language to appropriations bills in the past, but it never has been accepted by the Senate.
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