As Congress works this week to fund the government past April 28, CUNA will be engaged in the process as it seeks to see 2 particular issues addressed: funding for Community Development Financial Institutions (CDFIs) and the Consumer Financial Protection Bureau’s (CFPB) exemption authority. Funding for the government is set to expire Friday at midnight.
Credit unions are among the financial institutions that can be certified as CDFIs for the work they do serving under- and un-banked communities.
Certified CDFIs can apply for grants and other awards through the Treasury’s CDFI Fund. The fund was zeroed out for the remainder of this fiscal year (and for the next fiscal year) in President Donald Trump’s budget.
CUNA has written to congressional appropriators and issued an action alert to push for CDFI funding, while multiple credit unions have used CUNA’s Member Activation Program (MAP) to activate members and employees to push for funding as well.
In addition to the CDFI Fund, CUNA is also seeking the retention of report language that was included in last year’s House-passed Financial Services and General Government Appropriations Act for Fiscal Year 2017 (H.R. 5485).
The language directs CFPB to report to the House and Senate appropriations and finance committees on how it has used its exemption authority under section 1022 of the Dodd-Frank Act.
Section 1022 of the Dodd-Frank Act gives CFPB statutory authority to exempt any class of entities from CFPB rulemakings. CUNA believes the bureau’s failure to utilize this authority has harmed consumers seeking safe financial services.
CUNA and state leagues were joined by 75% of Congress last year in calling on the bureau to exercise that authority to tailor rulemakings to protect credit unions from regulatory burden.
Clarifications regarding CFPB’s authority under section 1022 is a goal of CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation.