The House Appropriations subcommittee on financial services and general government passed its legislation for fiscal year 2020 Monday night, legislation with several important credit union priorities addressed. The House Appropriations Committee is expected the begin marking the bill up starting Tuesday.
The bill would fund the Treasury’s Community Development Financial Institutions (CDFI) Fund at $300 million for FY2020, a $50 million increase from last year's $250 million. CUNA advocated strongly for the increased amount.
The CDFI Fund makes capital grants, equity investments and other awards to certified CDFIs. As of May 1, there are 291 credit unions out of 1,083 certified CDFIs nationwide.
The legislation would also fund NCUA’s Community Development Revolving Loan Fund at $2 million for the CDRLF, which funds a credit union revolving loan program and a technical assistance program.
The legislation also contains language that would provide limited protection for financial institutions that serve legal cannabis businesses, by not allowing any funds appropriated in the bill to be used to penalize a financial institution providing services to such businesses.
CUNA supports legislation that would allow credit unions and other financial institutions to serve these businesses, including both the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1595) and the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act.
The SAFE Banking Act passed the House Financial Services Committee in March.