A Republican effort to kill a postal banking pilot program contained in the House version of the FY22 Financial Services spending bill failed Monday.
The decision by the House Rules Committee not to allow Republicans to offer that amendment during floor debate of the measure all but guarantees that the $6 million pilot program will be in the House-passed version of the appropriations measure.
The House Appropriations Committee on Tuesday approved an FY22 Financial Services spending bill that would provide large increases for community development financial institutions programs and would establish a pilot program to test postal banking.
The House Financial Services Appropriations Subcommittee on Thursday approved an FY22 spending bill that would provide a huge 167% increase for the National Credit Union Administration’s Community Development Revolving Loan Fund program.
The Credit Union National Association on Tuesday endorsed the Biden Administration’s FY22 budget requests for the Community Development Financial Institutions program and the National Credit Union Administration’s Community Development Revolving Loan Fund program.
Saying that the number of applications regularly exceeds the funding available, National Credit Union Administration Chairman Todd Harper Tuesday urged Congress to increase appropriations for the agency’s Community Development Revolving Loan Fund program.
President Biden proposed Friday to increase the National Credit Union Administration’s Community Development Revolving Loan Fund program by $500,000 in FY22.
Democrats on the House Financial Services Committee are asking congressional budget writers for an $8.5 million increase for the National Credit Union Administration’s Community Development Revolving Loan Fund in FY22.
That represents an increase of almost 567% over the $1.5 million the program received during the current fiscal year. The Democrats said that 40% of the CDRLF funds should be set aside for Minority Depository Institutions.
Low-income credit unions will be able to submit grant applications for the National Credit Union Administration’s Community Development Revolving Loan Fund between May 3 and June 26, the agency announced last week.
The Biden Administration released a bare-bones funding blueprint for next year and it proposes a 22.2% increase for the Community Development Financial Institutions program, the opposite of Trump Administration budgets which always called for elimination of the program.
Congress is preparing to pass legislation that contains a $12 billion set-aside for the Community Development Financial Institutions program, and extensions of the Paycheck Protection Program, the Troubled Debt Restructuring provisions, and the pandemic-related provisions of the National Credit Union Administration’s Central Liquidity Facility. Congress is combining the coronavirus economic stimulus bill and the FY21 omnibus appropriations measure into one bill totally 5,593 pages.