WASHINGTON (7/18/14)--The House of Representatives passed the Financial Services and General Government Appropriations Act (H.R. 5016) for fiscal year 2015 Wednesday, by a vote of 228-195.
The bill includes an increased amount of money for the Community Development Revolving Loan Fund (CDRLF) from previous drafts, up to $2 million from $1.071 million. The National Credit Union Administration's CDRLF provides grants and loans to low-income designated credit unions for financial services and to stimulate economic activities in local communities.
The Credit Union National Association advocated for the increased CDRLF amount.
The bill contains $230 million for the Community Development Financial Institutions (CDFI) Fund, a $4 million increase from last year. The fund supports CDFIs by supporting business growth, job creation and low-income community revitalization.
The CDFI Fund breakdown is:
- $177 million for financial and technical assistance, including up to $3,102,500 for the cost of direct loans;
- $15 million for financial assistance, technical assistance, training and outreach programs designed to benefit Native American, Native Hawaiian and Alaskan Native communities;
- $18 million for the Bank Enterprise Award program, which provides financial incentives to increase lending, investment and service activities within economically distressed communities; and
- Up to $20 million for administrative expenses, which includes up to $300,000 for administration expenses of a direct loan program.
According to the U.S. Treasury Department's CDFI report for fiscal year 2013, credit unions represent 177 of 811 CDFIs active at the end of last year.
The bill also passed with an amendment introduced by Rep. Bill Posey (R-Fla.) that transfers $1 million to the Internal Revenue Service Inspector General's office for an economic study of the Foreign Account Tax Compliance Act (FATCA).
FACTA created a tax information and withholding system for certain payments made to financial institutions. CUNA, along with the World Council of Credit Unions (WOCCU), sent a letter in support of the amendment just prior to it passing Monday.
CUNA and WOCCU stated that the study was necessary due to "myriad unintended consequences of the law on U.S. financial institutions and U.S. citizens living abroad," according to the letter, which was signed by CUNA interim President/CEO Bill Hampel and WOCCU President/CEO Brian Branch.