WASHINGTON–While credit unions were happy to see the Senate Appropriations Committee propose an increase in funding for the Community Development Financial Institutions Fund of $50 million more than the House has proposed, the National Defense Authorization Act (NDAA) in which that funding is included has hit some bumps in the House because of the CDFI Fund, according to a new report.
House Financial Services Committee Chair French Hill (R-Ark.) walked away from another set of financial policy talks tied to the annual defense authorization package, multiple people familiar with the decision, told Punchbowl News, which covers Capitol Hill.
According to Punchbowl News, the four corners of financial policy leadership in Congress were negotiating a series of NDAA amendments that would have bolstered the Community Development Financial Institutions Fund.
The report, which notes CDFIs have strong bipartisan support on Capitol Hill, also noted the Trump administration has sought to cut both the funding and the staff that administers it, as the CU Daily has reported.
‘Walking Away’
Staff representing three of those corners — Sens. Tim Scott (R-S.C.), Elizabeth Warren (D-Mass.) and Maxine Waters (D-Calif.) — were supportive of language to bolster the CDFI Fund, Punchbowl News said.
“But aides for the Arkansas Republican abruptly announced their opposition to the amendments via internal talks…,” the news outlet said.
It added that the amendments under discussion would have introduced a new requirement for the Treasury secretary to testify before Congress about the CDFI Fund, expand the CDFI Bond Guarantee Program and enhance CDFIs’ access to capital and liquidity, according to two people with knowledge of the talks.
Hill’s aides declined to comment.
‘Time is Running Out’
“Lawmakers could return to the table before the conference version of the NDAA is finalized. But time is running out for committee leaders to hammer out these types of disagreements as defense lawmakers are pushing to introduce a finalized NDAA early next week,” Punchbowl News said.
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