FY23 funding for CDFI Fund and NCUA’s Community Development Revolving Loan Fund also revealed in Financial Services Appropriations bill.
When the House considers its FY23 Financial Services Appropriations bill, House Republicans will not be able to offer amendments banning a postal banking pilot and restricting climate change from being considered as a safety and soundness issue by financial regulators.
The House was scheduled to consider the financial services legislation as part of a six-bill “minibus” funding measure as early as Tuesday. The House Rules Committee approved a rule governing debate and amendments on the bill on Monday.
CDFI and NCUA Funding
The bill calls for $336.4 million for the Community Development Financial Institutions (CDFI) Fund program in the next fiscal year. That represents a $41.42 million increase over the current funding level. The Biden Administration requested $331 million for the program in FY23.
The bill also includes $4 million for the National Credit Union Administration (NCUA)’s Community Development Revolving Loan Fund—an increase of almost $2.5 million over the current fiscal year.
The remainder of the NCUA and the Consumer Financial Protection Bureau are not funded through the annual appropriations process.
What Did the Republican Amendments Call For?
Republicans had sought an amendment that would have prohibited the Treasury Department and financial regulators from considering climate-related risks to the stability of financial institutions.
GOP members also sought to ban the U.S. Postal Service (USPS) from implementing postal banking, including the pilot program being tested by the USPS. Under that program, customers may cash business and payroll checks in exchange for gift cards.
The House committee report now calls for the USPS to test postal banking in five rural and five urban areas.
Democratic Amendment Accepted
During floor consideration of the bill, the House will debate a Democratic amendment that would encourage the Financial Crimes Enforcement Network to address banking access problems faced by Muslim Americans and immigrant communities.