WASHINGTON–The House of Representatives has 12 working days and the Senate has 13 in December before adjourning until 2026, giving it little time to move forward with a huge credit union priority, the National Defense Authorization Act (NDAA), which is carrying language in support of another credit union priority, the CDFI Fund.
Those CU priorities and the congressional agenda are being complicated by the fact that on Dec. 31 the enhanced Obamacare premium subsidies expire. Should they do so, millions of individual Americans and small businesses face higher premiums or could even lose coverage. In the negotiations to end the latest government shutdown, Sen. Majority Leader John Thune (S-SD) promised Democrats that he’ll hold a vote on extending the subsidies by next week.
What’s Proposed for CDFI Fund
And with all that taking place, as the CU Daily has reported, under a Senate draft bill the CDFI Fund would receive $324 million, similar to the same amount appropriated in FY25. A House draft bill contains $276.6 million for the CDFI Fund. (The Senate draft also includes $3.272 million for NCUA’s Community Development Revolving Loan Fund (CDRLF), a slight decrease from the FY25 level of $3.465 million, while the House legislation allocates $3.4 million for the CDRLF.
Credit unions make up the largest group of certified CDFIs with 444 of 1,375 certified institutions.
But the holdup in Congress isn’t over the amount allocated for the CDFI Fund in 2026, which will be ironed out in committee.
Jason Stverak of the Defense Credit Union Council said the sticking point has become provisions the Senate added to the NDAA that ensure 2025 funds that have already been allocated are in fact disbursed. The Trump administration, which has sought to zero-out the CDFI Fund, has opted to not distribute funds that have already been awarded and on which many credit unions are waiting.
The Sticking Points
Rep. French Hill (R-AR), who chairs the House Committee on Financial Services, has objected to several provisions, including those that would expand the CDFI Bond Guarantee Program, those related to the Native American CDFI Assistance Fund (NACA), and to language related to appropriations moving forward so that the debate isn’t being repeated every six months, as Stverak noted.
Meanwhile, when it comes to Congress itself, Stverak is expecting an “incredibly busy” two weeks. As the negotiations around the CDFI funds go on behind the scenes, Stverak said the goal has been to get the NDAA passed and to the president for his signature by the second week of December.
“The thought process by (congressional) leadership is this is the one major legislative vehicle that is going to move before the end of the year,” Stverak said, adding that means there is other language that is “not normally included” that could be attached to the giant NDAA legislation.
Among those items is potential language that would put a moratorium on states passing laws limiting or regulating aspects of artificial intelligence, which President Trump has cited, Stverak added.
50/50 Odds
“We’ve expressed both in communications to the chairman’s office and to the committee that (the NDAA) be allowed to move forward,” said Stverak. “We understand there is a need to have continued discussion, but overall, including that the CDFI funds and the CDLRF funds would not only benefit credit unions but would also benefit communities and community banks, as well. Our hope is this does not become such a delay and a distraction that this entire portion of the bill (is removed).”
Stverak said that if he were handicapping the inclusion of the provisions, he would say it’s “50/50.”
“Obviously, when you’re negotiating with the four corners (GOP, Dems in the House, Senate) there’s a tremendous amount of power and each of these members want to make sure that their priorities are included,” he added.
