The House Appropriations Committee Wednesday approved an FY21 financial services spending measure that includes an $11.5 million boost for the Community Development Financial Institutions program.
Voting 30-22, the committee approved the bill that would provide $273.5 million for the program in FY21. The bill also would provide the NCUA’s Community Development Revolving Loan Fund with $2 million in FY21. The program received $950,00 this year.
Rep. Harold Rogers (R-Ky.) told the committee that the CDFI program has worked extremely well in areas of his district. The Trump Administration has proposed eliminating the program in each of its budgets.
The report accompanying the bill also calls for a pilot program to test postal banking. Credit union trade groups vehemently oppose postal banking, contending that if permitted, they could provide services to people who might use post offices for their financial services.
Republicans opposed the bill because it contained many hot-button issues.
The bill now goes to the House floor. The Senate has not yet begun its FY21 appropriations process.