House Subcommittee Approves $45.4 Million CDFI Cut, CFPB Restructure
Learn how CUNA responded to a House Subcommittee's approval of a $45.4 million cut to the CDFI program and restructuring of the CFPB.
CUNA supports changes to CFPB setup but calls for greater CDFI funding.
In a move designed to simply move the appropriations process along, the House Financial Services Appropriations Subcommittee on Thursday approved an FY24 spending bill that would provide $278.6 million for the CDFI program.
That would represent a cut of almost $45.4 million from the program’s FY23 funding level.
The subcommittee approved the overall measure by a voice vote, with Democrats making clear they will vehemently oppose the bill when it is considered by the full Appropriations Committee and on the House floor.
What They’re Saying
Financial Services Appropriations Subcommittee Chairman Rep. Steve Womack, R-Ark., said that many of the cuts were necessary because several programs received large spending increases during the pandemic.
However, panel ranking Democrat Steny Hoyer of Maryland said the overall spending called for in the bill represents a 58% drop from current funding. He added that House Republicans were abandoning the spending levels that were agreed upon in the recent debt limit legislation.
“In my view, this is not a real bill,” he stated.
The House bill also would make the CFPB subject to appropriations, convert the agency into a five-member commission and prohibit the bureau from implementing its rule to collect data from financial institutions about their lending to women- and minority-owned small businesses.
Response From Credit Union Group
In a letter to the subcommittee, CUNA President/CEO Jim Nussle praised the plan’s changes to the CFPB, as well as the restrictions on small-business lending.
However, Nussle said CUNA continues to seek $500 million for the CDFI program rather than the $278.6 million in the House bill.
“The CDFI Fund uses small amounts of federal dollars to leverage significant amounts of private and non-federal dollars and has added a tremendous boost to the CDFI industry (which relies heavily upon private sector funds from corporations, individuals, religious institutions, and private foundations),” he wrote.
Nussle also pushed for $6 million for the NCUA’s Community Development Revolving Loan Fund. The House bill calls for $3.5 million—the same amount the program received this year.
What Comes Next?
The House bill stands in stark contrast with the amount of money the Senate Appropriations Committee plans to spend in its version of the FY24 Financial Services spending bill.
The Senate Committee on Thursday approved allocations for its subcommittees, with appropriators allocating $16.7 billion for non-defense, discretionary spending in the Financial Services bill. The House, on the other hand, has allocated $11.266 billion for the bill.
Senate Appropriations Committee Chairwoman Patty Murray, D-Wash., said Thursday that her committee will adhere to the spending caps established in the debt limit legislation.
“The task of funding our government is never an easy one—and this year, these limits will make it more difficult,” she said.