House Clears Omnibus Spending Bill Containing ABA-Advocated Provisions

The House today approved an omnibus appropriations package that includes several banking-related provisions, including American Bankers Association-backed legislation that would address “tough legacy” contracts that currently reference Libor. ABA Rob Nichols welcomed the inclusion of the provision, noting that “with this action today, Congress continues to express overwhelming support for a federal solution to ensure investors, consumers and issuers of securities avoid years of uncertainty and unexpected economic losses from Libor’s cessation.”

The bill also included an $11 billion increase to the authorization cap for the Small Business Administration’s 504 loan program—something ABA previously called for—as well as $5 billion for debt refinancing.

Additionally, lawmakers authorized $295 million for community development financial institutions, including $35 million for the Treasury Department’s Bank Enterprise Award Program. ABA and a coalition of trade groups previously urged House and Senate appropriations leaders to continue bipartisan support of at least $360 million in funding for the CDFI Fund in fiscal year 2022, with $42 million allocated for the BEA program. The House bill reflects a total increase of $25 million for CDFIs, with about $10 million for the BEA program specifically.

The Senate is expected to approve the spending package as early as tomorrow, though it could face temporary delays if objections are raised.