Debt Bill Would Rescind More Than $290 Million From ECIP
The debt limit legislation passed by the House would rescind $290.89 million of 'unobligated' funds left in the CDFI Fund’s ECIP program. Learn why.
CUNA letter says 77 credits unions have received funding from program.
The debt limit legislation passed by the House on Wednesday would rescind $290.89 million of “unobligated” funds left in the CDFI Fund’s Emergency Capital Investment Program (ECIP).
The House passed the debt limit bill, H.R. 3746, on a bipartisan vote of 314–117 and it now goes to the Senate, which is expected to pass it. The legislation represents a deal between House Speaker Kevin McCarthy, R-Calif., and President Biden.
Inside the Legislation
In addition to extending the debt limit, the bill rescinds the amount of money left in pandemic-related programs, such as ECIP. The program was created by Congress in the FY21 omnibus appropriations measure and it provided the Treasury Department with $9 billion to invest in CDFIs.
H.R. 3746 would keep $284.5 million in ECIP to pay expenses associated with awards that have been announced but not yet disbursed.
As part of the debt limit deal, Republicans insisted that the legislation claw back pandemic funds that had not been used yet. In total, more than $27 billion in pandemic-related funds would be rescinded.
Impact on Credit Unions
Credit unions have received funds through ECIP, according to a letter submitted by CUNA to the Treasury Department on May 8. That letter, which contained comments on proposed information collection associated with the program, states that 77 credit unions had received ECIP awards. Of those, four are MDIs, 55 are CDFI credit unions and a further 18 were both CDFI and MDI credit unions.
New CDFI Director Sought
In other CDFI news, officials from the Treasury Department—which administers the fund—have announced they are seeking a new CDFI director, following the departure of Jodie Harris in February.
“The incumbent has overall responsibility for implementing the CDFI Fund’s mission, which is to increase economic opportunity and promote community development investments for underserved populations and in distressed communities in the United States,” the department said, in announcing the search. “This position manages a diverse and geographically dispersed team of more than 100 employees and reports to the Deputy Assistant Secretary for Community and Economic Development.”