House Committee Approves $300 Million for CDFI Program

At the same time, the panel defeats an amendment that would have placed the CFPB under the appropriations process.

U.S. Capitol steps. (Source: Shutterstock)

The House Appropriations Committee on Tuesday approved an FY20 funding measure that would provide the Community Development Financial Institutions program with $300 million—a 20% boost from current funding.

In approving the Financial Services spending bill, 30-21, the panel also defeated an amendment that would have placed the CFPB under the appropriations process.

Republicans opposed the bill, but Appropriations member Rep. Harold Rogers (R-Ky.) said he was pleased that the committee rejected the Trump Administration’s plan to eliminate the CDFI program.

“CDFI is responsible for creating many jobs in my district as well as yours,” Rogers, a former Appropriations Committee chairman told the panel.

However, the Trump Administration reaffirmed its opposition to the CDFI program, citing it as one of several examples of over-spending by the Appropriations Committee.

The administration had provided $14 million to oversee the CDFI’s existing commitments, Acting Office of Management and Budget Director Russell Vought said in a letter to the committee this week.

“The level in the FY 2020 Budget request provided for administrative expenses is sufficient to support oversight of existing commitments and administration of other CDFI Fund programs,” Vought wrote. ·

The Appropriations Committee defeated an amendment by Rep. Steve Womack (R-Ark.) that would have placed the CFPB under the appropriations process.

“Because they get to spend whatever they want, Congress has little oversight over their activities,” he said.

However Financial Services Appropriations Subcommittee Chairman Mike Quigley (D-Ill.) said the amendment amounted to a “backdoor attack” on the CFPB.

The bill now goes to the House floor. Rep. Tom Graves (R-Ga.) said that the bill, as written, has no chance of being signed into law. The Senate has not yet started its appropriations process.

In the past, when Republicans controlled the House, the Senate provided more funding for the CDFI program than the House did.