House appropriations subcommittee on Thursday approved a FY2017 spending measure that cuts the Community Development Financial Institutions program 23% and makes the CFPB and NCUA subject to the appropriations process.
The Financial Services Subcommittee approved the bill by voice vote, amid Democratic objections to myriad policy riders, including many that the House passed as part of the Financial CHOICE Act.
Subcommittee chairman Todd Graves (R-Ga.) said he was pleased that the bill included the financial riders.
“I’m particularly excited about the financial reforms we’ve included,” he said, adding “It’s safe to say that this bill takes a significant amount of power away from Washington.”
But Democrats blasted the inclusion of the policy riders.
“There is an appropriate place and time to debate these issues,” said subcommittee ranking Democrat Mike Quigley of Illinois. “This committee is not the proper place.”
Appropriations Committee ranking Democrat Nita Lowey of New York said Republicans were trying to “sneak” a repeal of the Dodd-Frank Act into the appropriations measure.
The policy riders would curtail many of the powers of the CFPB, including the repeal of its power to take action based on Unfair, Deceptive, Abusive Acts or Practices.
Some of the policy riders have been included in past versions of House spending measures, but never have been accepted by the Senate.
The two Democrats also criticized the funding level for the CDFI program, saying it amounts to a $58 million cut. The Trump Administration has proposed eliminating the program. However, in the FY2017 Continuing Resolution that is funding the federal government, the spending level was set at $248 million.
Credit union trade groups said that while they are pleased with some of the policy riders, they do not want the NCUA to be subject to the appropriations process.
“While the regulatory relief provided by the bill is welcome, CUNA continues to have significant concerns about a provision that would move NCUA under the appropriations process, which could blur the independence of NCUA and the credit union system,” said NCUA President/CEO Jim Nussle said. “A separate, independent federal regulator and insurer is critically important to the credit union system, and we will work to ensure that the NCUA is not placed under the appropriations process in a final funding bill.
Nussle also said that CUNA is very disappointed to the funding cut for the CDFI program.
“The impact that credit unions make through those funds is indisputable and benefits communities across the country,” Nussle said. “These are programs that Congress should be investing more in, not less.”
NAFCU officials expressed similar sentiments.
“NAFCU appreciates lawmakers’ inclusion of some regulatory relief, but we are continuing to focus on keeping the NCUA out of appropriations,” said Brad Thaler, NAFCU’s vice president of legislative affairs., adding that the association also will be pushing for increases in CDFI funding.
